Despite having a mostly positive week, the price of Ethereum appears to be once again being influenced by the state of the market. The first Ethereum spot exchange-traded fund (ETF) in the US was filed on September 6 by Ark Invest.
What does it say? I’m blocked by Matt, it would seeem, despite never having had a cross word with him and, in fact, mostly positive interaction?? Baffling
— Paul (@Migano2000) March 20, 2020
The price of ether was barely affected by this ETF application, rising just to $1,650 the next day. Additionally, the token has nearly completely undone the tiny gains from the important development.
Ethereum Price Registers 0.1% Rise Last Week – Here’s Why
Currently, the price at which Ethereum is traded is around $1,628, according to CoinGecko. The second-largest cryptocurrency has struggled to perform on the market, as seen by a tiny 0.1% price increase over the past seven days.
I don't make the rules.
Price follows hashrate.
Ethereum network registers a new hashrate all-time high of 1,137 TH/s
— odin free 🦇🔊 (@odin_free) February 20, 2022
An investment vehicle called a spot ETH exchange-traded fund tracks the price of Ethereum on the spot market and enables investors to purchase and sell the digital asset using a brokerage account. It is anticipated that a product of this kind will increase interest in and investment in the Ethereum token.
Despite the encouraging news, the price of ETH has mostly remained unchanged this week. Recent research by the blockchain analytics company IntoTheBlock sheds light on why the news had so little of an effect on Ethereum’s price.
‘Supply & Demand Balance’
The current supply and demand balance is one of the main causes of the ETH price’s sideways movement, according to the data analytics platform. According to IntoTheBlock, “large holdings are concentrated close to ETH’s current price, consolidating prices in a tight range.”
The freight market bottomed on May 14th. Since then conditions have continued to improve.
The outbound tender rejection index (OTRI) measures the balance of supply/demand in trucking, by measuring the % of truckloads that are rejected.
This data comes from the "tender"… pic.twitter.com/UTt17uwF7f
— Craig Fuller 🛩🚛🚂⚓️ (@FreightAlley) September 2, 2023
According to IntoTheBlock statistics, 5.1 million ETH total were purchased below the $1,600 level to build support, and 6.5 million ETH total were purchased at a price above this level to construct resistance. The blockchain analytics company came to the conclusion that traders prefer to deal in a small range with a lot of ETH positions.
‘Automated Buying, Discretionary Selling’
Additionally, IntoTheBlock thinks that although bullish traders first appeared to have bought the news, “discretionary sellers” quickly gained control of the story.
-Indeed, I protected my capital & was +ve in 21, can’t claim great returns as we were exploring multiple strategies & systems, to find our style
-We started with discretionary & traded vol crush, earnings, expiry etc
-Soon we switched to automated rule-based selling & buying
— Saket..⏳ (@trading_honchos) March 20, 2023
Since the Ethereum and Solana tokens make up a sizable amount of FTX’s holdings, it is likely that traders’ caution due to the upcoming liquidation is the source of these assets’ subpar market performance.