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 Price Remains Stable Despite Positive News

Despite recent positive developments, the price of Ethereum has failed to see significant growth. Ark Invest’s filing for the first Ethereum 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 suggests that the current supply and demand balance is a key factor in Ethereum’s stagnant price. The concentration of large holdings near the current price level creates a narrow trading range. IntoTheBlock data reveals that 5.1 million ETH was acquired below $1,600 to establish support, while 6.5 million ETH was purchased above 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 seem to have taken control of Ethereum’s narrative after the initial bullish response. This may be influenced by FTX’s plan to liquidate $3 billion worth of crypto holdings, which has raised concerns among traders. The slow market performance of Ethereum and Solana may also be linked to FTX’s holdings, leading traders to approach these assets with caution.

Hot Take:

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

The Impact of Arks ETF Application on Ethereum Price: Why It Remained Unaffected
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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. A guiding star for both audacious explorers and curious neophytes journeying through the crypto galaxy, Newt’s insights forge a compass for insightful decision-making amidst the ever-evolving universe of digital assets. With the precision of a wordsmith, they craft a narrative that enriches the evolving chronicle of the crypto cosmos.