Crypto Industry News:
The U.S. Securities and Exchange Commission is about to approve the first exchange-traded funds (ETFs) based on futures contracts with Ethereum as the underlying asset.
This step would be a breakthrough for the sector and would set an extremely helpful precedent for many companies that have been striving to introduce this type of product to the market for some time.
The US regulator has no intention of blocking those products that are based on futures contracts for Ethereum, the second largest (market capitalization) cryptocurrency in the world. Nearly twelve companies, including Volatility Shares, Bitwise, Roundhill and ProShares, have already applied to launch these types of products.
While it is not yet certain which of these funds will be given the green light, it is speculated that several may be approved by October this year.
Recall that the SEC previously refused to approve ETFs directly based on cryptocurrencies, but in late 2021, it began to allow trading funds based on futures contracts with Bitcoin as the underlying asset, which are listed on the traditional Chicago Mercantile Exchange (CME). Journalistic sources say Ethereum is set to be next.
Technical Market Outlook:
The ETH/USD pair has hit level of $1,545 during the recent spike down, so the market lost around -15% from the consolidation lows located at $1,830. The bulls are trying to bounce from the lows and the current local bounce high was made at the level of $1,693. The level of $1,545 will now act as the technical support, but the key technical support is seen at the level of $1,620. Please notice, the current market conditions are extremely oversold on H4 and Daily time frame chart, so the bulls are free to bounce even towards the technical resistance located at $1,803.
Weekly Pivot Points:
WR3 - $1,874
WR2 - $1,857
WR1 - $1,850
Weekly Pivot - $1,841
WS1 - $1,834
WS2 - $1,824
WS3 - $1,808
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
