The Impact of Arks ETF Application on Ethereum Price: Why It Remained Unaffected

The Impact of Arks ETF Application on Ethereum Price: Why It Remained Unaffected

Ethereum (ETH) Price Remains Stable Regardless of Positive News

Regardless of recent positive developments, the price of Ethereum (ETH) has failed to see whole lot of growth. Ark Invest’s filing for the first Ethereum (ETH) spot exchange-traded fund (ETF) in the  United States had a minimal impact on the cryptocurrency’s price, with it only experiencing a slight increase to $1,650. The price has since returned to around $1,628, reflecting a mere 0.1% rise in the past week.

‘Supply & Demand Balance’

An analysis by IntoTheBlock implies that the present supply and demand balance is a key factor in Ethereum’s stagnant price. The concentration of large holdings near the present price level establish a narrow trading range. IntoTheBlock data outlines that 5.1 Million Ethereum (ETH) was acquired below $1,600 to establish support, while 6.5 Million Ethereum (ETH) was purchased over this level to create resistance. This concentration of positions within a limited range constrains the price movement of Ethereum.

‘Automated Buying, Discretionary Selling’

Discretionary sellers appear to have taken control of Ethereum’s narrative after the initial positive trend response. This could be influenced by FTX’s intend to liquidate $3 Billion worth of cryptocurrency holdings, which has raised concerns between traders. The slow market performance of Ethereum (ETH) and Solana (SOL) may likewise be linked to FTX’s holdings, leading traders to approach these assets with caution.

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Hot Take:

The price of Ethereum (ETH) remains relatively stable regardless of positive news and developments. The concentration of large holdings and impending liquidation of FTX’s cryptocurrency assets contribute to the lack of whole lot of price movement. Traders are cautious and hesitant to make substantial investments until there is more clarity regarding these factors.

Author – Contributor at | Website

Newt Bettec emerges as an intellectual voyager at the intersection of crypto analysis, meticulous research, and editorial mastery. Within the digital labyrinth of cryptocurrencies, Newt’s intellect traverses intricate corridors, resonating with seekers of diverse inclinations. His talent for unraveling complex threads of crypto intricacies seamlessly blends with his editorial finesse, transmuting intricacy into an engaging tapestry of understanding.

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