Ethereum Price Rebounds Despite SEC Delaying ETF Decisions
The price of Ether (ETH), the second most valuable cryptocurrency, is bouncing back and currently trading in the $2,230s, up over 4.5% in the past 24 hours. This comes despite the US Securities and Exchange Commission (SEC) delaying decisions on several Ether Exchange Traded Fund (ETF) applications, including those from Hashdex and Grayscale. Instead, Ether traders are pushing the price higher along with a broader crypto market rally that has seen Bitcoin (BTC) rise above $43,000. This rally is driven by macro traders betting on interest rate cuts in the US and around the world next year. The S&P 500 is also trading at its highest levels since January 2022.
SEC Delays Hashdex and Grayscale Ethereum-based ETFs – What’s Going On?
The SEC has announced a delay in making decisions on Hashdex’s Nasdaq Ethereum ETF and Grayscale’s Ethereum Futures ETF until next May. Additionally, decisions on spot Ethereum ETF applications from VanEck, ARK Invest, and 21Shares have also been delayed. These delays were expected to occur before December 25th. The SEC stated that they needed more time to gather public input regarding whether these ETFs should be listed. While the SEC has previously approved Ether futures ETFs, it has yet to approve any spot Ether ETFs or mixed Ether ETFs. Some analysts believe that Grayscale’s ETF application is an attempt to eventually gain approval for a spot Ether ETF.
Price Prediction – Where Next for Ether (ETH)?
Ether’s recent rebound from its lows near $2,100 indicates that the key support level around $2,150 remains intact. If Ether can hold above its 21-day moving average, it suggests that the short-term bullish trend is still in place. Despite the delay in Ether ETFs, asset managers continue to file amendments for spot Bitcoin ETFs with the SEC, indicating ongoing dialogue and likely near-term approvals. Along with positive macro tailwinds, this could contribute to a positive bias in the crypto market through the end of the year. However, Ether appears to be forming a bearish descending triangle structure, and a break below this pattern could lead to a short-term setback.
Ether Alternative to Consider – Bitcoin Minetrix ($BTCMTX)
A decentralized Bitcoin mining protocol called Bitcoin Minetrix has generated excitement and raised over $850,000 in funds from early investors during its $BTCMTX token presale. Investors who purchase $BTCMTX can stake their tokens and earn non-transferable Bitcoin Minetrix mining credits. These credits can be burned in exchange for a share of Bitcoin Minetrix’s mining revenues. $BTCMTX token holders also receive rewards, with a portion of the token supply reserved for early stakers. The protocol is governed by smart contracts on the Ethereum blockchain, providing transparency and security compared to centralized cloud mining services.
Hot Take: Ethereum Price Prediction as SEC Delays Hashdex and Grayscale Ethereum-Based ETFs – What’s Going On?
The recent rebound in Ether’s price despite the SEC’s decision to delay ETF approvals indicates the resilience of the cryptocurrency market. While regulatory delays can create uncertainty, they also provide an opportunity for market participants to evaluate their investment strategies. The delay in Ether ETFs allows for more time to gather public input and potentially address any concerns raised by regulators. In the meantime, other positive factors such as macro tailwinds and ongoing discussions regarding Bitcoin ETFs suggest that the crypto market may continue trading with a positive bias. However, traders should closely monitor Ether’s price movements and the formation of a bearish descending triangle pattern, which could lead to a short-term setback.
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