Crypto Surge: Ethereum ETF, Bitcoin Resilient

Published on: May 22, 2024|3 min read

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London: 22 May 2024 (TraderMade): In a dynamic week for the cryptocurrency market, significant developments are unfolding as VanEck's proposed spot, Ethereum ETF, appears on the Depository Trust and Clearing Corporation's (DTCC) new securities list under the ticker $ETHV.

Simultaneously, Bitcoin (BTC) is experiencing a minor correction but maintains its bullish momentum, signaling the potential for another upward surge.

Key Takeaways

VanEck's Ethereum spot ETF listing on the DTCC has fueled market optimism, with Ethereum surging 31% to $3,700.
Bitcoin remains strong above $69,000 despite a minor correction from its recent high of nearly $72,000, indicating potential for another upward surge.

VanEck's Ethereum ETF Listed on DTCC

VanEck's Ethereum spot ETF listing on the DTCC marks a pivotal step toward its approval by the U.S. SEC. Although this listing is crucial, it does not guarantee SEC approval, which remains pending.

VanEck's application, submitted in September 2023, is likely to be the first to receive a decision from the SEC, setting the stage for other applications from industry giants like BlackRock, ARK Invest, and Fidelity.

The outlook for Ethereum-based funds had been uncertain due to limited engagement from the SEC.

However, recent developments have turned the tide. Bloomberg ETF analysts Eric Balchunas and James Seyffart have raised the probability of SEC approval to 75%, citing the removal of staking restrictions and favorable political shifts as key factors.

Ethereum's Price Surge

The positive sentiment surrounding the Ethereum ETF has significantly boosted Ethereum's (ETH) performance.

Over the past week, ETH has surged 31%, trading around $3,700. This rally was sparked by an 8% increase following Bloomberg analysts' optimistic assessment, breaking through the critical $3,500 level.

Standard Chartered has also expressed confidence in the ETF's approval and is bullish on Ethereum's price, projecting it could reach $8,000 by the end of the year.

Bitcoin Corrects Gains, Holds Strong

Bitcoin, meanwhile, has faced a minor correction from its recent high of nearly $72,000. After struggling above the $71,800 resistance zone, BTC has started consolidating around the $70,000 mark.

Despite the dip, Bitcoin remains well-supported above $69,000, trading above the 100-hourly Simple Moving Average (SMA).

On the hourly chart of the BTC/USD pair sourced from Kraken, a significant bullish trend line is emerging, indicating support of around $69,200). This trend line is essential for maintaining the bullish outlook, as a move below $68,800 could disrupt the potential for another increase.

Technical Analysis: Bitcoin

Bitcoin's recent price action saw it spike to a weekly high of $71,896 before encountering resistance. The subsequent correction brought it below the $71,000 level, aligning with the 23.6% Fibonacci retracement level from the $66,047 swing low to the $71,896 high.

Despite this, BTC is trading above $69,000, supported by the 100-hourly SMA. Immediate resistance lies near $70,500, with subsequent major resistances at $71,200 and $71,850. A break above $71,850 could propel BTC towards $72,500 and $74,500.

Conversely, failure to surpass $71,200 might lead to further declines, with key support at $69,200 and $68,800.

Market Sentiment and Future Outlook

The market remains optimistic as both Ethereum and Bitcoin demonstrate resilience and potential for further gains. Ethereum's surge is bolstered by the anticipated approval of the VanEck spot ETF, while Bitcoin's correction appears to be a healthy consolidation phase rather than a reversal.

Investors are closely monitoring these key levels, with the broader market sentiment leaning bullish amidst these pivotal developments.

Conclusion

In conclusion, the cryptocurrency market is poised for exciting movements as regulatory developments and market dynamics unfold. VanEck's Ethereum spot ETF listing on the DTCC and Bitcoin's strong performance amidst a correction is setting the stage for potential new highs in the near future.