Ethereum Price Flatlines as Ark Invest and 21Shares Apply for Spot Ether ETF
This week, Ethereum (ETH) price remained stagnant despite the recent announcement that Cathie Wood’s Ark Invest and 21Shares have submitted an application to launch the first spot Ether exchange-traded fund (ETF). This comes just two weeks after the two firms applied for two Ethereum futures ETFs. The approval of a spot Bitcoin ETF next month could potentially lead to the approval of other spot crypto ETFs, which could have a significant impact on the crypto ecosystem. Blue-chip firms like BlackRock and Fidelity have also applied for spot crypto ETFs, and their approval could bring mainstream acceptance and possibly trigger a new bull market. New York Digital Investment Group (NYDIG) predicts that the approval of spot Bitcoin ETFs could result in a $30 billion influx of new demand for Bitcoin.
Ethereum Co-Founder’s X Account Hacked
Vitalik Buterin, the co-founder of Ethereum, recently had his X account hacked. It is suspected that the hack was a result of a phishing link or a SIM swap attack. Over $700,000 was stolen from victims, and the incident has raised concerns and uncertainty in the market. Santiment data shows a decline in social volume for the ETH token and a decrease in the volume of active addresses over the last 24 hours. While the attack has not directly affected the price of ETH, it may have indirect effects on market sentiment.
Ethereum Price Forecast
Currently, the price of Ethereum is $1,627, with a daily drop of almost 0.5%. The Relative Strength Indicator (RSI) is also dropping, indicating falling momentum. If the price continues to decline, it could fall below the immediate support level of $1,621 and potentially drop to $1,529 or even the March lows at around $1,420. However, if bullish activity increases, Ethereum price could break through the 50-day Exponential Moving Average (EMA) at $1,726 and confront resistance levels at $1,765 and $1,841.
ETH Alternative: WSM
While Ethereum is in a consolidation phase, another promising alternative is emerging – WSM. The native cryptocurrency for the ecosystem, WSM offers passive income opportunities through staking. The project has already raised over $25 million in presale collections and is expected to provide potential for 10X gains. Staking WSM tokens has a high annualized percentage yield (APY) of 67%, and the rapid accumulation of staked tokens adds to the project’s stability and resilience. This incentive-oriented mechanism can help mitigate potential market crashes and encourage long-term investor participation.
Hot Take: Ethereum Price Remains Stagnant Despite ETF Applications
Despite the recent news of Ark Invest and 21Shares applying for a spot Ether ETF, Ethereum price has not seen any significant movement. The approval of a spot Bitcoin ETF next month could potentially signal the opening of the floodgates for other spot crypto ETFs and bring mainstream acceptance to the crypto ecosystem. However, the SEC has until March to decide whether to approve or reject the applications. In the meantime, Ethereum co-founder Vitalik Buterin’s X account has been hacked, adding fear and uncertainty to the market. While the attack has not directly impacted the ETH price, it may have indirect effects on market sentiment. As for the future of Ethereum, the price forecast suggests the possibility of a further decline, but increased bullish activity could lead to a breakthrough and confront resistance levels. Alternatively, investors may consider the WSM cryptocurrency as a promising alternative with potential for significant gains through staking.
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