Ethereum (ETH), the second largest cryptocurrency, is currently fighting a strong battle as it aims to push through a crucial resistance zone. According to renowned analyst Ali, this is a turning point where the price range should be between $3,170 and $3,270. Ali has identified that over 1.63 million addresses within this resistance zone are currently holding 4.45 million ETH which is pretty much significant enough for consideration regarding these areas of concentration in terms of their ownership pattern, as it means so much in its journey toward where it can go based on what such owners decide.
For enthusiasts and investors who are passionate about ETH breaking past this ceiling, there is enormous potential here. Ali predicts that if the cryptocurrency clears this hurdle out of its way, then significant upward movement could be expected; thus the price of ETH might move higher to reach $3,650.
Potential Catalyst: Approval of Ethereum Spot ETF
The potential catalyst for this surge lies in the realm of financial regulation, specifically the approval of an Ethereum spot Exchange-Traded Fund (ETF). Recent insights from Bloomberg analyst James Seyffart shed light on significant movements in the Ether ETF arena.
Notably, Grayscale, a prominent player in the cryptocurrency investment space, has filed a prospectus with the U.S. Securities and Exchange Commission (SEC) for the creation of a new Ethereum ETF known as the Grayscale Ethereum Mini Trust. This ETF would be established through a spin-off and distribution from the existing Grayscale Ethereum Trust.
Craig Salm, Grayscale’s Chief Legal Officer, discussed details of its regulatory filings in during an exclusive interview. To enable the launching of the former, Salm stated that Grayscale submitted a registration statement for the Grayscale Ethereum Mini Trust and an Information Statement for the Grayscale Ethereum Trust (ETHE). As part of this process, there would be a “spin-off” where some Ether underlying ETHE shares would seed into the Grayscale Ethereum Mini Trust and distribute ETH shares pro rata to ETHE shareholders pending regulatory approval.
Investors are waiting for the SEC’s decision. The whole approval process consists of several steps, including the effectiveness of registration statements and compliance with regulatory requirements. The crypto community is so much eager to know what is happening with Ether ETFs before May ends in 2024.
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