Ethereum Futures ETF Approval Impact on Price

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Despite challenges, Ethereum (ETH) defended $1,600 this week. Price-sensitive large holders are selling, causing 80% of ETH daily price changes in the past two weeks to go down. A Bloomberg report hints at possible approval of several ETH Futures ETFs by the US SEC.

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Amid challenges in the industry, Ethereum (ETH) held onto the $1,600 support this week. Recent news talks about a possible approval for Ethereum Futures ETFs, and people are wondering how it will affect ETH’s price in the short term.

After a Bloomberg report said the US SEC might approve several ETH Futures ETF applications, ETH’s price quickly went up to around $1,700. The report mentioned big names like ProShares, Volatility Shares, Bitwise, and Roundhill.

But experts are looking at data from Ethereum’s network to see how prices will change in the next few weeks.

Ethereum Whales Continue Selling Despite Positive Reports:

Recent information from Ethereum’s network shows that big holders of Ethereum, known as whales, aren’t buying more even after good news from Bloomberg. They’re still selling, even when the price went up a bit on Friday after a big drop.

From what we can see, a group of these big holders, who have between 10,000 and 100,000 Ethereum coins, started selling in the middle of July. Between July 14 and August 18, they sold around 1.12 million Ethereum coins.

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How Will Ethereum (ETH) Price React to ETF Approval? | Whales’ Wallet Balances | Aug 2023. Source, Santiment

Whales’ Ethereum Selling and Its Impact:

At the moment, Ethereum’s price is about $1,660. The big holders who sold 1.12 million Ethereum coins made $1.86 billion from it. These whales’ actions have matched closely with how Ethereum’s price changed.

It’s not surprising that when these big holders sold 4% of their coins, Ethereum’s price fell by 18% from July 14 to August 18.

But if the SEC officially confirms what Bloomberg said, that could make the whales stop selling. This might change the situation.

Ethereum’s Whales Selling and Oversold Situation:

After a month of big holders selling Ethereum, the situation seems a bit extreme. The Relative Strength Index (RSI) data shows that on August 18, Ethereum’s RSI was at 14.

To put it simply, it means 86% of the time in the last two weeks, Ethereum’s price went down. This is a sign that things might not be balanced right now.

How Will Ethereum (ETH) Price React to ETF Approval? — Daily RSI, Aug 2023, Source: TradingView

Understanding Ethereum’s RSI and Potential Investment Move:

The Relative Strength Index (RSI) helps us see how strong and fast a price is moving. When the RSI goes under 30 after being higher, it means the price might be too low and could go up again.

Smart investors might think this is a sign to buy more when prices are low. They believe the Ethereum price will go up in the next few days.

Opportunity for Investors as Ethereum’s RSI Signals:

With Ethereum’s RSI showing that prices might have gone too low, investors can act before the whales‘ selling slows down. The Exchange On-chain Market Depth chart also agrees with this idea.

As you can see below, smart crypto traders have orders to buy 50,720 Ethereum if the price goes down to $1,500. But if the whole crypto world stays down, Ethereum’s price could go as low as $1,400 before it goes up again.

Ethereum (ETH) Price Prediction | Exchange Market Depth, August 2023 | Source: IntoTheBlock

Ethereum Bulls and Possible Price Moves:

On the other hand, Ethereum’s supporters might try to get the price back to $1,900 because of the Futures ETF Approval news.

But as you can see above, crypto traders are ready to sell 25,380 Ethereum if the price goes to $1,825. If not enough people want to buy, it could make it harder for the price to go up.

But if Ethereum goes past that challenge, the supporters might push for the $1,900 goal.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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