Today’s Ether price is experiencing a lift as traders take into account the possibility of an Ethereum futures ETF launching and the aftermath of a weaker than expected inflation print.
ETH‘s remarkable upturn, nearly 2.5% to $1,688, marks the highest level in a month, riding on the wave of a broader positive move that was initiated the previous day. This bullish shift is primarily attributed to the subsequent approval given to asset manager Valkyrie to embed Ethereum futures exposure within its existing Bitcoin Strategy ETF (BTF).
Simultaneously, rumblings about the U.S. Securities and Exchange Commission’s (SEC) projected approval of several Ethereum futures ETFs for launch have surfaced. In anticipation, traders are observing fifteen ETFs from nine issuers awaiting approval, edging on a launch possibly slated for next week.
Embedding a broader perspective, the recent U.S. core personal consumption expenditures report, known as the Federal Reserve’s preferred inflation gauge, played a not insignificant part in boosting Ethereum. The gauge reflected a 0.1% rise in August, a bit lower than the anticipated 0.2% by markets. This underwhelming rise helped deflate rising U.S. bond yields, subsequently uplift non-yielding assets, including stocks and cryptocurrencies.
Ethereum, too, saw its standing improve on Sep. 29th in correlation with short liquidations worth $7.88 million across Ether-tied derivatives, overshadowing $1.7 million worth of long positions liquidated on the same day. New buyers swooping in for the action, coupled with short liquidations, spurred the Ether price upwards.
Technical analysis of the price movement in the Ethereum market shows that the upward leap on Sep. 29 brought the Etherine price above its 50-day exponential moving average, positioning it to target $1,740 in October 2023. However, if trading slips below the 50-day EMA support, Ether bears risks of falling to the 0.5 Fib line near $1,610 in October, marking about a 3.75% drop from its current stance.
This recent upsurge has sparked interest as it deftly maneuvers in the wake of macroeconomic factors and potential ETF launches. Yet, it’s crucial to bear in mind that every trading move encompasses its risks. It’s a reminder for traders and stakeholders to undertake their own research when making a decision, striking a balance between optimism and caution.
Source: Cointelegraph
