Could the Launch of an ETH Futures ETF Trigger a Massive Breakout for Ethereum?
If you’ve been following Ethereum (ETH) closely, you may have heard about the potential launch of an Ethereum futures exchange-traded fund (ETF). This news could be a game-changer for the cryptocurrency, potentially leading to a significant breakout in its price.
VanEck Announces ETH Futures ETF
Global asset manager VanEck has recently announced the upcoming launch of the VanEck Ethereum Strategy ETF (ETUF). Unlike traditional ETFs that invest in spot ETH, this actively managed ETF will trade Chicago Mercantile Exchange (CME) ETH futures contracts. The fund will be managed by Greg Krenzer, VanEck’s Head of Active Trading. ETUF will trade on CBOE alongside VanEck’s Bitcoin Strategy ETF (XBTF).
Ethereum News Catalyst Could Trigger Ascending Triangle Breakout
Now, let’s take a look at the chart. Since June 2022, Ethereum has been forming an ascending triangle pattern. This pattern is characterized by consistently higher lows and nearing its two-thirds point from the apex. According to technical analysis, this increases the chances of a breakout occurring when there’s a significant news catalyst – such as the launch of an ETH futures ETF.
If Ethereum manages to break above $2,000 per ETH on higher than normal volume, it could trigger a massive breakout. Based on measure rules, this breakout could push prices to over $4,000 per ETH and potentially revisit its former all-time highs from the last bull market.
Hot Take: Potential for Ethereum’s Ascending Triangle Breakout
The launch of an ETH futures ETF by VanEck has the potential to be a catalyst for a significant breakout in Ethereum’s price. The ascending triangle pattern that has been forming since June 2022 indicates that Ethereum has been building up momentum. If the pattern is valid, breaking above $2,000 per ETH could lead to a target objective of over $4,000 per ETH and a revisit to its previous all-time highs. Keep an eye on the news surrounding the launch of the ETF and monitor Ethereum’s price movements closely.
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