Ethereum finds support in $3,500 levels, ProShares filed an S-1 registration
Bulls got some respite as ProShares filed an S-1 registration statement for its spot Ethereum ETF on June 11
Ether has struggled to surpass the $3,900 resistance in the past few weeks; however, price recovery is set in motion. Bulls got some respite as ProShares filed an S-1 registration statement for its spot Ethereum ETF on June 11, confirming and expanding on the roles of various fund participants.
Coinbase Credit is set to function as the trade credit lender for the company, permitting it to obtain cash and Ethereum (ETH) for certain transactions surpassing its trading balance. Bank of New York Mellon will handle purchase and redemption requests.
The paper also outlines positions that have already been made public, including those of Delaware Trust Company as trustee, ProShare Capital Management as sponsor, Coinbase Custody as Ethereum custodian, Coinbase Inc. as primary execution agency, and BNY Mellon as cash and administrator. Changes to each job are permitted in the file; for example, BNY Mellon’s administrator role has an initial two-year term with yearly renewals.
SEC has acknowledged the proposed rule amendment submitted by NYSE Arca on behalf of ProShares. If approved, the move will allow the exchange to list and trade fund shares.
The SEC has not yet approved the proposed regulatory modification relevant to ProShares’ fund. Based on market projections, the decision is expected to take a few weeks or months.
A closer examination of the daily chart reveals that Ethereum experienced strong selling activity that led to a big rejection following a brief period of consolidation near the critical $4K resistance. This highlights aggressive short positions close to the previous major swing high of $4K and suggests substantial selling interest around that level. A head and shoulders pattern has formed in the 4-hour chart due to recent congestion near the $4K mark, suggesting a lack of bullish momentum and an increase in supply. This well-known pattern points to a possible bearish short-term reversal. However, a bearish scenario is more likely now that the price has broken below the neckline of this structure.
Further highlighting selling domination is a negative divergence between the price and the RSI indicator, which raises doubts about Ethereum’s future course. Ether’s value hovers around $3.5K, a crucial support level. The most likely consequence is that the bearish trend will continue if sellers can cross this crucial level. The EMA50’s negative pressure supports the price actions that indicate a bearish trend for the upcoming period. It is observed that a close over $3641.82$ will put an end to the projected decline and take the price back on its main upward track.
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