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Thursday, June 6, 2024
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ETH Open Interest Soars 50% as SEC Chairman Says ETH ETF Launch Will Take Longer

Ethereum (ETH) price maintained around $3,860 on Thursday after U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler expressed the view that the launch of spot ETH ETFs may be delayed . Meanwhile, open interest (OI) for Ethereum derivatives on exchanges has seen a significant increase.

Market Dynamics: Delayed ETH ETF Launch, High Open Interest, Increase in New Accumulated Addresses

In an interview with CNBC on Wednesday, SEC Chairman Gary Gensler said spot ETH ETFs need more time to list on exchanges, suggesting S-1 approval is not imminent. happen. He noted that his agency is still working on disclosure measures with exchanges.

After the SEC unexpectedly approved 19b-4 filings from eight issuers on May 23, some analysts predicted the agency would respond quickly to the S-1 filings. The SEC’s request for issuers to file updated S-1 filings on Friday appears to have confirmed these analysts’ expectations.

Following the filing, Bloomberg analyst Eric Balchunas suggested that spot ETH ETFs will launch in July. However, given Gensler’s recent comments, it may take more time before ETFs begin trading.

In other news, open interest (OI) for ETH derivatives on exchanges has hit a new all-time high, increasing 50.3% to $14 billion, according to CCData Exchange Review. Notably, open interest on the Chicago Mercantile Exchange (CME) increased 59.4% to 1.25 billion USD.

Meanwhile, the balance of new accumulated addresses holding between 10 – 10K and between 10K and 100K ETH has been steadily increasing since the SEC approved the ETH spot ETF, according to data from CryptoQuant.

Balance of newly accumulated addresses | Source: CryptoQuant

Technical Analysis: ETH will maintain a sideways trend until the ETH ETF spot launches

ETH recorded slight gains today, trading near $3,860 and continuing its sideways trend.

ETH’s 30-day MVRV is also in line with the sideways movement, hovering around 6% over the past week. This shows that the number of Ethereum addresses that have purchased the coin within the past 30 days has seen an average increase of 6%.

Despite the sideways trend, whales are still accumulating ETH, and both long-term and short-term holders are likely to hold on to their tokens.

ETH may continue to trend sideways until the ETH spot ETF officially launches. The $3,618 level remains important support in the event of short-term price volatility. In the long term, ETH could overcome the $4,093 resistance and conquer $4,878 to establish a new all-time high.

ETH/USDT 4-hour chart | Source: TradingView

QCP Capital analysts also share a positive view: “While ETH has lagged in this move, we predict it will soon catch up and possibly outperform BTC when the ETH ETF trades start trading immediately.

ETH liquidation data from Coinglass shows a total of $23.78 million liquidated, with $13.81 million from Long positions and $9.97 million from Short positions.

You can see coin prices here.

SN_Nour

According to Fxstreet

Mark Tyson
Mark Tyson
Freelance News Writer. Always interested in the way in which technology can change people's lives, and that is why I also advise individuals and companies when it comes to adopting all the advances in Apple devices and services.
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