Ethereum’s native token, ether (ETH), has rallied sharply over the past 24 hours, fueled by evidence that institutional investors have capitalized on the early July sell-off to accumulate the second-largest cryptocurrency.
Meanwhile, optimism is once again being fueled by VanEck and 21Shares filing an amended application with the U.S. Securities and Exchange Commission (SEC) for an Ethereum exchange-traded fund (ETF).
Ethereum Funds See Net Inflows Increase
The Ethereum price rebounded by 10.11% on July 9, reaching $3,113, compared to the previous day’s low of $2,830.
The ETH/USD rally coincided with the release of CoinShares’ weekly report, which showed that Ether-backed investment funds saw inflows of $10.2 million in the week ending July 5. During the same period, ETH prices fell by around 14.70% due to selling pressure from Mt. Gox and the German government.
CoinShares researcher James Butterfill noted that institutional investors viewed the cryptocurrency market decline as a “buying opportunity,” meaning they expect the market to resume its uptrend in the coming days or weeks.
VanEck, 21Shares Submit Revised Ether ETF Application to SEC
Additionally, VanEck and 21Shares are filing a revised version of their Ether ETF application with the SEC in an effort to get approval in July.
21Shares also filed amended forms for its Core Ethereum ETF. Neither filing specified an exact launch date on U.S. exchanges, but both filings said the ETF would launch “as soon as practicable after the effective date” of the registration.
On May 23, the SEC approved the 19b-4 application for a spot Ether ETF from eight asset managers, including VanEck, 21Shares, and Bitwise. Experts expect the final approval to come early this month.
At a Senate Banking Committee hearing in June, SEC Chairman Gary Gensler hinted that the commission might approve the S-1 “sometime this summer,” but did not specify a date.
ETH Price Technical Rebound
Ethereum’s current rally is part of a bounce that began after testing the 50-week exponential moving average (50-week EMA; red wave) as support near $2,788. The same wave support level has blocked ETH’s previous attempts to break below, as shown below.
The bounce helped Ethereum break the neckline of the prevailing double bottom pattern as seen on the 4-hour (4H) chart.
The double bottom pattern is considered a bullish reversal pattern. It is resolved when the price breaks the neckline resistance line and rises to the maximum distance between the deepest point of the pattern and the neckline.
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Applying the same technical rules to the ETH price, the double bottom target is around $3,300, which is 6.40% upside from current price levels. However, a break below the neckline would invalidate the bullish setup, making it more likely that ETH will retest the local low of $2,830 in July.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.