ETHEREUM ETF
Updated
With the Ethereum ETF decision just days away, ETH has made a massive breakout play in an effort to front run a positive ETF outcome, the approval of VanEck and ArkInvest/ 21Shares ETH ETFs on the 23rd & 24th May respectively.
In terms of price action and charting this is how I see it. Now that price has broken out from the downtrend and hit the Bearish OB as shown, I think many were caught of guard and expected any sort of volatility to come on the day of the decisions. Instead it seems many have decided to front run the decision and go long which opens up more challenges. I think ETH had priced in a rejection of the ETF at ~£3K, with how the SEC has viewed ETH and it's stance on insisting it's a security, Coinbase estimated a 30-40% chance of an approval last weekend. Now that price has risen almost as if we already have news of approval I think that should the ETF be denied we could fall straight back down to 3K area with support areas shown as targets on the chart. This would print a Bart Simpson style pattern and many Longs will be devastated.
On the other hand, Bloomberg have said that the chances of approval has gone from 25% to 75% and the chart shows this new level of optimism. If the ETF is approved I could see ETH using this current level as a base to target new local highs and close the gap on BTC dominance.
In terms of price action and charting this is how I see it. Now that price has broken out from the downtrend and hit the Bearish OB as shown, I think many were caught of guard and expected any sort of volatility to come on the day of the decisions. Instead it seems many have decided to front run the decision and go long which opens up more challenges. I think ETH had priced in a rejection of the ETF at ~£3K, with how the SEC has viewed ETH and it's stance on insisting it's a security, Coinbase estimated a 30-40% chance of an approval last weekend. Now that price has risen almost as if we already have news of approval I think that should the ETF be denied we could fall straight back down to 3K area with support areas shown as targets on the chart. This would print a Bart Simpson style pattern and many Longs will be devastated.
On the other hand, Bloomberg have said that the chances of approval has gone from 25% to 75% and the chart shows this new level of optimism. If the ETF is approved I could see ETH using this current level as a base to target new local highs and close the gap on BTC dominance.
Comment
Moving into TP1 territory before the decision is even made, expect volatility no matter the result.Comment
Currently Barting as predicted awaiting the decision, should be in the next hour or two.Comment
ETHEREUM ETF'S HAVE BEEN APPROVED A historic moment for the crypto world, remember this day.
I think once the initial volatility clears up we can steadily move up toward new highs
Comment
How we got here is a little different to the plan, however ETH is closing in on bearish target 2.After a bullish ETF approval ETH moved towards BULLISH TARGET 1, before reversing and moving towards BEARISH TARGET 1 and soon TARGET 2.
Eventually the ETF will go online, most likely in a few weeks however the buzz from the approval is gone and sentiment is very negative right now.
On a positive note from a TA standpoint, we have fully closed out the FVG on the way up, and BTC is @ 1D 200EMA, A huge support zone in the past.
Very important close coming up.
Comment
ETH ETF is confirmed to start trading today! After a double bottom V shaped recovery since the recent pullback ETH is now back at $3,500, For me the red bearish OB's shown are still relevant and are resistance levels. It will be interesting to see what kind of inflows we see in the first few days.
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