• SEC Commissioner Hester Pierce anticipates a better approach toward possible spot ETH ETF.
  • Ethereum investment products may not be compelled by a court case but instead follow a more traditional path.
  • Ethereum price continues to dump much like Bitcoin with potential for 5% further downside.

Following the landmark approval of spot Bitcoin exchange-traded funds (ETFs) on January 11, the Ethereum (ETH) community started envisioning a similar investment product of their own. Nevertheless, it is impossible to ignore the months-long back-and-forth that transpired between the institutional players and the US Securities & Exchange Commission (SEC).

Also Read: SEC lives up to the expectations as it delays spot ETH ETF; Ethereum price makes no move

Ethereum ETFs could face a smoother path to approval

Hester Peirce, alias Crypto Mom and an SEC Commissioner, hopes for a better journey to approval for spot Ether ETFs relative to their Bitcoin counterparts. Speaking to Zack Guzmán of Coinage, the Commissioner said, “That's not how we're going to do our approvals [...] I think that kind of a lesson will certainly stick with us,” referring to the tumultuous engagement that led to the spot BTC ETFs approvals.

Specifically, Peirce anticipates “regular way considerations” to spot ETF products much like has been applied to other related products, without the need for court orders to deem the agency’s approach “arbitrary and capricious.” Still, she articulates that spot BTC ETFs had met the requirements for approval much earlier. She also celebrates that people now have a cheaper and more efficient way of gaining access to BTC. 

Multiple participants in the crypto sector, including Valkyrie Fund CIO Steven McClurg, say an ETH ETF launch would be unsurprising.

Meanwhile, multiple institutions have already submitted applications for spot ETH ETFs, including VanEck, Ark21Shares, Hashdex, Grayscale, and Invesco. While chatter about Ether ETFs was still fresh, Ethereum experienced a supply shock, where funds rushed into the ETH market as investors front ran a possible spot ETH ETF.

Ethereum price outlook amid deliberations for spot Ether ETFs

The proof-of-stake (PoS) token’s market value continues to fall as momentum is steadily dropping on the Relative Strength Index (RSI). It comes after the Ethereum price slipped below the lower boundary of the ascending channel, stomped y overhead pressure due to the 50-day Simple Moving Average (SMA) at $2,336.

Increased selling pressure could see the Ethereum price extend the fall to test the support confluence between the 100-day SMA and the horizontal line around $2,135. In a more dire case, the dump could see ETH extend a leg lower to the $2,000 psychological level, standing nearly 10% below current levels.

ETH/USDT 1-day chart

On the other hand, if the bulls resurface, Ethereum price could push north, potentially reclaiming the confines of the ascending channel before confronting the 50-day SMA. In a highly bullish case, ETH could tag the $2,388 resistance level.

A break and close above the aforementioned blockade could see Ethereum price hit the midline of the channel around the $2,600 psychological level or even extend a neck higher to the $3,000 psychological level. Such a move would mean a 35% climb above current levels. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin volatility hits multi-month lows, raising concerns of liquidation cascades

Bitcoin volatility hits multi-month lows, raising concerns of liquidation cascades

Bitcoin price has been consolidating between $94,000 and $100,000 for two weeks. Defund exchange FTX repayments on Tuesday dipped Bitcoin towards its lower boundary of the consolidating range.

More Bitcoin News
Litecoin bulls target $170 mark as open interest reaches four-year high of $887 million

Litecoin bulls target $170 mark as open interest reaches four-year high of $887 million

Litecoin price extends its gains and recovers above the $135.00 level on Wednesday, rallying over 7% so far this week. LTC’s open interest hints at a continuation of the rally as it reaches the highest level since May 12, 2021, of $887 million. 

More Litecoin News
Maker Price Forecast: MKR generates highest daily revenue of $10 million

Maker Price Forecast: MKR generates highest daily revenue of $10 million

Maker price extends its gains by 6%, trading around $1,189 on Wednesday after rallying more than 20% so far this week. On-chain data support a bullish move ahead as MKR generated a new yearly high in daily revenue, and funding rate data is positive.

More Maker News
Ripple's XRP holds symmetrical triangle support as SEC acknowledges Bitwise XRP ETF filings

Ripple's XRP holds symmetrical triangle support as SEC acknowledges Bitwise XRP ETF filings

Ripple's XRP is down 3% on Tuesday despite the Securities and Exchange Commission (SEC) acknowledgment of Bitwise XRP ETF. Unchained Crypto noted that XRP ETF could underperform due to key fundamental issues.

More Ripple News
Bitcoin: BTC consolidates before a big move

Bitcoin: BTC consolidates before a big move

Bitcoin price has been consolidating between $94,000 and $100,000 for the last ten days. US Bitcoin spot ETF data recorded a total net outflow of $650.80 million until Thursday.

Read full analysis
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

BTC

ETH

XRP