Ethereum
SEC Chairman Says Ethereum ETF Launch Will Take Longer
- Ethereum ETFs “will take some time” to launch, says SEC chairman.
- ETH open interest on exchanges jumped 50% to a new all-time high following the SEC’s shift toward ETH ETFs.
- Accumulated new addresses holding 10,000-10,000 and 10,000-100,000 ETH increased steadily after the approval of ETH ETF 19b-4.
Ethereum (ETH) price hovered around $3,860 on Wednesday after Securities & Exchange Commission (SEC) Chairman Gary Gensler expressed his opinion that the launch of spot ETH ETFs may be delayed . Meanwhile, Ethereum derivatives on exchanges have seen an increase in open interest (OI).
Daily summary of market developments: ETH ETFs lagging, open interest increasing, growth in new addresses accumulated
In an interview with CNBC on Wednesday, SEC Chairman Gary Gensler said spot ETH ETFs will “take some time” to go live on exchanges, indicating that S-1 approvals are not imminent. He noted that his agency is still working on disclosure measures with the exchanges.
Learn more: Ethereum Leveraged ETFs Launch as Price Unresponsive
After the SEC’s sudden approval of eight issuers’ 19b-4 filings on May 23, several analysts expected the agency to respond quickly to S-1 registration statements. The SEC’s request for issuers to submit updated S-1 filings on Friday also appears to have confirmed those analysts’ expectations.
Following the filings, Bloomberg analyst Eric Balchunas suggested that ETH spot ETFs would launch in July. However, given Gensler’s recent comments, it could take longer before the ETFs begin trading.
In other news, open interest (OI) for ETH derivatives on exchanges reached a new all-time high, increasing 50.3% to $14 billion, according to May’s CCData Exchange Review. Notably, open interest on the Chicago Mercantile Exchange (CME) jumped 59.4% to $1.25 billion.
Read also : Ethereum maintains week-long consolidation, sees over $3 billion exodus from exchanges
Meanwhile, the balance of new accumulated addresses holding between 10,000 and 10,000 and 100,000 ETH has increased steadily since the SEC’s pivot on the ETH ETF, according to data from CryptoQuant.
New accumulation of ETH
ETH Technical Analysis: Ethereum to Maintain Sideways Trend Until Spot Launch of ETH ETFs
Ethereum saw a slight gain on Wednesday, trading near $3,860 and continuing its sideways trend.
ETH’s 30-day MVRV also aligns with the horizontal movement, hovering around 6% over the past week. This indicates that the number of Ethereum addresses that purchased the coin in the last 30 days saw gains averaging 6%.
Learn more: Top 3 Bitcoin, Ethereum, Ripple Price Predictions: Bitcoin Momentum to Power the Crypto Market
Despite the horizontal trend, whales are still accumulating ETH, and both long-term and short-term holders will likely hold on to their tokens.
ETH could continue its horizontal trend until the official launch of spot ETH ETFs. The $3,618 price level remains a key support in case of near-term price fluctuations. In the long term, ETH could break above the $4,093 resistance and reverse the $4,878 level to set a new all-time high around $5,000.
ETH/USDT 4-hour chart
Analysts at QCP Capital also share a bullish view: “ETH is lagging in this move, but we expect catch-up and perhaps even outperformance versus BTC when the ETH spot ETF will begin to be negotiated,” they said.
ETH liquidation data shows a total of $23.78 million in liquidations, with $13.81 million in long positions liquidated and $9.97 million in short positions, according to Coinglass data.
Ethereum Development FAQ
After the merge, the Ethereum community next considers the Sharding upgrade, which is planned for later in the year. The development can be summed up in four words: “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, expanding the amount of data that can be stored or accessed. At the same time, all services running on top of the Ethereum blockchain will benefit from significantly reduced transaction fees.
A fork is the splitting of a blockchain after the developers have agreed and implemented upgrades. The decision comes after these developers reached consensus on a software upgrade. The next part will see one part continuing with the status as is, while the other will proceed with new features combined with the old ones. A hard fork essentially involves a permanent divergence of a new sidechain from the original one, while a soft fork does the same, with the only difference being that it is temporary.
EIP-4844 is a proposal for improving the Ethereum network. The upgrade promises reduced gas fees, which is an attractive offer considering the high transaction costs that continue to deter crypto players. This has been a long-standing concern for the Ethereum network. The proposal is also called “proto-Danksharding”, with an unparalleled ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps reduce transaction costs as everything becomes decentralized.
Gas Token is an innovative new Ethereum contract in which users can tokenize gas on the Ethereum network. This means they can store the gas when it is cheap and start deploying it once the market moves north. Using the Gas token helps subsidize high gas prices on transactions, meaning investors can do everything from arbitrage on decentralized exchanges to pre-purchasing initial coin offerings (ICOs).