Ethereum Price Rises Nearly 3% to $2,300 as ETF Developments Impact Market Sentiment

Ethereum (ETH/USD) is currently trading at $2,282.94, up 2.71% over the past 24 hours, signalling a slight recovery in the market.

However, the broader landscape for Ethereum remains influenced by recent news related to exchange-traded funds (ETFs), with two major developments dominating the narrative.

First, asset manager WisdomTree has decided to withdraw its S-1 filing for a spot Ether ETF with the U.S. Securities and Exchange Commission (SEC). This filing, initially submitted in May 2021, has been under consideration for over three years.

According to WisdomTree’s latest filing on September 6, the firm acknowledged that no securities had been or will be issued under this registration. Despite paying regulatory fees, the company requested that its unused fee amount be credited for future filings.

This move comes at a time when another major asset manager, VanEck, also announced the closure of its futures-based Ether ETF due to low demand.

Both actions have raised questions about the current demand for Ethereum-focused financial products, particularly given the increasing popularity of spot cryptocurrency ETFs.

WisdomTree and VanEck Withdraw ETF Applications

WisdomTree’s decision to pull back from its Ethereum ETF application is a significant development, especially since it was initially seen as a vote of confidence in the maturing Ether market.

In its 2021 filing, WisdomTree argued that Ethereum had evolved similarly to Bitcoin, becoming more scalable and efficient, which made it suitable for broader investment products.

However, with this withdrawal, it’s clear that the firm no longer sees immediate prospects for the ETF.

At the same time, VanEck has decided to close its futures-based Ethereum ETF due to insufficient demand. The asset manager cited “performance, liquidity, assets under management, and investor interest” as the reasons for shuttering the fund.

This move is particularly noteworthy given the rising dominance of spot cryptocurrency ETFs, which have attracted significant inflows while futures-based ETFs appear to be losing traction.

These dual developments suggest that the market for Ethereum-based ETFs may need more time to mature, particularly in light of regulatory hurdles and shifting investor preferences.

Still, they highlight the ongoing evolution of Ethereum as an asset class, even as demand for certain financial products falters.

Ethereum’s Technical Outlook: Key Levels to Watch

Ethereum’s price action shows signs of recovery, but technical indicators suggest caution is warranted. Immediate resistance is seen around $2,335, a critical level that ETH must break to confirm a bullish continuation.

If Ethereum successfully breaches this point, the next resistance levels lie at $2,488 and $2,603, potentially signalling a stronger upward movement.

On the downside, key support is found at $2,150, with further protection at $2,021. If Ethereum falls below $2,021, it could trigger additional selling pressure, driving the price towards $1,895.

• Resistance Levels: $2,335, $2,488, $2,603
• Support Levels: $2,150, $2,021, $1,895
• RSI and 50-day EMA: The Relative Strength Index (RSI) currently sits at 38, indicating weak momentum. Additionally, the 50-day Exponential Moving Average (EMA) is at $2,422, presenting a significant barrier that Ethereum needs to overcome for a sustained rally.

In the near term, Ethereum will need to break above the $2,335 resistance level to confirm a bullish shift in sentiment. Failure to do so could allow bears to retain control, pushing prices lower.

Conclusion: Uncertain Road Ahead for Ethereum

Ethereum is currently navigating a mixed market environment, influenced by ETF developments and broader market sentiment. While the cryptocurrency is showing signs of recovery with a 2.71% price increase, it faces several resistance levels that could cap its upward potential.

The withdrawal of WisdomTree’s and VanEck’s ETF applications adds another layer of uncertainty, especially regarding institutional interest in Ethereum-based financial products.

Overall, Ethereum needs to break above the $2,335 resistance level to reignite bullish momentum. Otherwise, the cryptocurrency could face further downside, particularly if it fails to hold above its key support levels.

Investors should keep a close eye on ETF developments and technical indicators to gauge Ethereum’s next move.