Ethereum
CryptoQuant Warns of Ethereum Price Correction and Volatility if ETF Approvals Waver
On-Chain Analytics Company CryptoQuant warned that ETH prices could fluctuate if pending Ethereum spot ETFs encounter uncertainties.
He warned that ETH could suffer a “significant price correction” if the SEC denies ETH ETF applications or delays the approval process.
Additionally, high exchange flows could lead to ETH price volatility in the coming days. Amid rumors of pending approvals for spot ETH ETFs, trading flows reached 62,000 ETH, the highest since March.
Upward pressure on prices
Despite possible reductions, ETH prices rose for several days following rumors that the SEC would approve spot ETFs connected to the digital asset.
Ethereum was trading at $3,735 at press time on May 22, up about 21% over 24 hours, based on CryptoSlate data.
CryptoQuant said traders put upward pressure on prices by aggressively opening long positions in the future market in anticipation of higher prices, driving the open interest on ETH from 2, 8 to 3.2 million ETH, the highest since January 2023.
The activity resulted in a short squeeze and cascading short liquidations.
Permanent ETH holders, or accounts that hold but do not sell ETH, have also put upward pressure on prices by purchasing a large amount of ETH. Permanent holders purchased over 100,000 ETH in one day, the highest daily amount since September 2023.
Buy orders dominate the ETH perpetual futures market with a buy/sell taker ratio above one, putting additional pressure on the market.
ETH short liquidations reached 9,300 ETH, marking the highest hourly volume in 2024 and causing a short squeeze in future markets.
Pending requests
The SEC is scheduled to rule on VanEck’s ETH ETF spot proposal on May 23, but may rule on similar requests simultaneously.
The approval process is still ongoing. On May 21, Cboe filed amendments to Rules 19b-4 on behalf of five ETH ETF issuers. Nasdaq also amended 19b-4 filings to black rockwhile NYSE Arca filed updates for Shades of grey Ethereum Mini Trust and Bitwisethe candidacy of.
Eleanor Terrett, FOX business reporter said that the SEC and issuers are now initiating conversations around S-1 registration statements. Bloomberg ETF Analyst James Seyffart estimates that the funds may not launch until weeks or months after initial approvals.
Ethereum Market Data
As of press time, 00:46 UTC, May. 23, 2024, Ethereum is ranked #2 in terms of market capitalization and the price is down 1.59% in the last 24 hours. Ethereum has a market capitalization of $449.52 billion with a 24-hour trading volume of $25.24 billion. Learn more about Ethereum ›
Crypto Market Summary
As of press time, 00:46 UTC, May. As of December 23, 2024, the total crypto market is valued at $2.57 trillion with a 24 hour volume of $99.86 billion. Bitcoin dominance is currently at 52.95%. Learn more about the cryptocurrency market ›