The Ethereum Foundation has initiated the liquidation of $13.3 million worth of Ethereum (ETH), prompting investors to contemplate the potential ramifications of this action on the price of ETFs. ETH, in terms of market capitalization, is, incidentally, the second most prominent cryptocurrency.
As a matter of convention, the movement of the Foundation signifies the onset of market fluctuations that predict a subsequent decline. Despite this, Ethereum creates a bullish scenario.
Based on the Ethereum prediction, positive indications are present. At the moment, its trading price stands at $3,550. Ethereum experienced a 14.6% increase in value over the past week, reaching a market capitalization of $420 billion, while the cryptocurrency market as a whole gained 17.8%.
Market setbacks are prevalent in an ascending scenario; nevertheless, they engender conjecture as investors anticipate the subsequent course of action. At 89.95, the weekly Relative Strength Index (RSI) appears to be aligned with the selling activity emanating from the Ethereum Foundation.
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Considering the broader context, Bitcoin (BTC) experienced a surge of over 28% over the past week, nearly attaining $69,000. At the moment, its value is $67,000.
The Ethereum network is currently preparing to initiate the Dencun update, which will combine the Deneb and Cancun updates. This is anticipated to occur on March 13th and will contribute to the reduction of Layer 2 transaction fees while also enhancing Ethereum’s upgradeability, efficacy, and security.
The Ethereum Foundation announced on February 27 that it had achieved the capability to scale test networks. In addition, it was subjected to substantial growth. Furthermore, its network garnered the interest of 1.8 million new users. The metric monitoring of Santiment revealed that the number of addresses of ETH holders increased to 115.5 million. As a comparison, 70,000 wallet addresses for Bitcoin decreased simultaneously.
As a result of the escalating demand from new ETH addresses and the $2.3 billion decline in exchange supply, Ethereum is on track to surpass $4,000 by March 2024.
In the midst of this, numerous issuers are reportedly delaying the SEC’s consent procedure for spot Ethereum ETFs.
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The upcoming meeting between the SEC and the registrants of ETFs is anticipated to provide a significant degree of clarity. Grayscale, Invesco Galaxy, BlackRock, and Franklin Templeton are among the firms that will be affected by the outcome of any decision.
