Ethereum Hits 2023 Highs on BlackRock’s ETF Plans

  • ETHUSD
    (${instrument.percentChange}%)

ETH/USD Analysis

Optimism around the coming of spot Bitcoin exchange-traded funds (ETFs) has helped cryptocurrencies over the past few months. The road to such products has opened after a US court ruled against the decision of the US Securities and Exchanges Commission (SEC) to reject a relevant request from Grayscale. [1]

Investment firm BlackRock is among those wanting to release spot Bitcoin ETF, but it also looks to an Ethereum spot ETF, according to a filing by the the Nasdaq Stock Market LLC on Thursday. The document reveled that BlackRock registered to create an iShares Ethereum Trust, which would likely lead to request for an ETF. [2]

The custodian of the Trust will be crypto exchange Coinbase, which reported a 52% y/y drop in crypto trading volumes in Q3, to just $76 billion. Bitcoin was the most traded asset with a 38% share, followed by Ethereum, which accounted for 19% of the volume. [3]

After a slow start to the week, ETH/USD soared 9% on the ETF news on Thursday and sets new 2023 highs today, heading towards its fourth consecutive profitable week. It blew past the 23.6% Fibonacci of the 2021 high/2022 low slump, which bring the 38.2% level in its crosshairs (2,475).

On the other hand, the overbought conditions can contain the advance and a pullback would be reasonable from a technical prospective. As such, there is scope for a return of the popular altcoin below the 23.6% Fibonacci, but we are cautious around deeper corrections that would breach the EMA200 (at around 1,750) and the downside looks well protected.

Nikos Tzabouras

Senior Financial Editorial Writer

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 09 Nov 2023 https://storage.courtlistener.com/recap/gov.uscourts.cadc.38827/gov.uscourts.cadc.38827.1208547574.0_2.pdf

2

Retrieved 09 Nov 2023 https://listingcenter.nasdaq.com/assets/rulebook/nasdaq/filings/SR-NASDAQ-2023-045.pdf

3

Retrieved 21 May 2024 https://s27.q4cdn.com/397450999/files/doc_financials/2023/q3/Shareholder-Letter-Q3-2023.pdf

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