Spot Ethereum (ETH) Exchange-Traded Funds (ETFs) Approval in the US Turns Out to be a Sell-the-News Event

Ethereum price had dropped nearly 8 percent in the past 24 hours to hover around $3180 on Thursday during the early Asian session.

The approval of spot Ethereum (ETH) exchange-traded funds (ETFs) in the United States has turned out to be a classic sell-the-news event.

Ethereum price had dropped nearly 8 percent in the past 24 hours to hover around $3,180 on Thursday during the early Asian session. As a result, nearly $300 million was liquidated from the crypto derivatives market, mostly involving long traders. Notably, more than $81 million was liquidated from Ethereum traders.

Major Cash Outflows from US-based Spot Ethereum ETFs

After registering positive cash inflows on the first day of trading, the US-based spot Ethereum ETFs reported a net cash outflow of about $150.6 million on Wednesday. The expected cash outflows from Grayscale’s ETHE, which has net assets of around $8 billion, have significantly weighed down on the cash inflows from the other spot Ether ETF issuers.

However, as reported earlier by Cryptoslate, Grayscale had shifted a large portion of its assets into the spot ETFs, which could have contributed to the lower cash inflows.

As per the latest market data, Grayscale’s ETHE registered a total cash outflow of about $327 million. Meanwhile, the Grayscale Mini Trust (ETH) registered a net cash inflow of about $45 million.

The largest gainer on Wednesday was the Fidelity Ethereum Fund (FETH), with about $74 million. The Bitwise Ethereum ETF (ETHW) registered a net cash inflow of about $29.6 million while the VanEck Ethereum ETF (ETHV) reported a net cash inflow of around $19.8 million.

Cash inflows into the US-based spot Ethereum ETFs on March 15, 2023. Source: TrackETFs

Ethereum Price Action: Key Levels to Watch

After rallying nearly 120 percent from the November lows, Ethereum price has consolidated within a crucial resistance zone for over five months now. Having dropped below the 50 and 200 daily Moving Averages (MAs), Ethereum price is likely to slip below $3k and retest the support level around $2,868.

However, a popular crypto analyst alias Sheldon the Sniper believes that Ethereum price will likely find a solid support level around $3,097, which coincides with the 0.618 daily Fibonacci extension. He predicts ETH price Will likely hit $4k in 1 or 2 Weeks

A daily candlestick close below the 0.618 Fib will likely invalidate the bullish structure and could lead to further support levels around $2,868 being tested.

The above is the detailed content of Spot Ethereum (ETH) Exchange-Traded Funds (ETFs) Approval in the US Turns Out to be a Sell-the-News Event. For more information, please follow other related articles on the PHP Chinese website!