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On-chain analytics firm CryptoQuant warned that eth prices could fluctuate if pending ethereum ETFs encounter uncertainties.
He warned that eth could suffer a “significant price correction” if the SEC rejects eth ETF applications or delays the approval process.
Furthermore, high exchange flows could lead to volatility in eth prices in the coming days. Amid rumors of pending eth spot ETF approvals, exchange flows hit 62,000 eth, the highest since March.
Upward price pressure
Despite potential drawdowns, eth prices have risen for several days following rumors that the SEC will approve spot ETFs connected to the digital asset.
ethereum was trading at $3,735 at press time on May 22, up about 21% in 24 hours, according to data from CryptoSlate.
CryptoQuant said traders produced upward price pressure by aggressively opening long positions in the futures market with expectations of higher prices, driving eth open interest from 2.8 million to 3.2 million eth, the highest since January 2023.
The activity resulted in a brief squeeze and cascading brief liquidations.
Permanent eth holders, or accounts that own but do not sell eth, also produced upward price pressure by purchasing a large amount of eth. Permanent holders bought more than 100,000 eth in one day, the highest daily amount since September 2023.
Buy orders dominate the eth perpetual futures market with buyers' buy/sell ratio exceeding one, putting more pressure on the market.
Liquidations of eth short positions reached 9,300 eth, marking the highest hourly volume in 2024 and causing a brief squeeze in futures markets.
Awaiting requests
The SEC is due to decide on VanEck's spot eth ETF proposal on May 23, but may decide on similar requests simultaneously.
The approval process is still underway. On May 21, Cboe filed changes to 19b-4 rules on behalf of five eth ETF issuers. Nasdaq also amended 19b-4 filings for BlackRock, while NYSE Arca filed updates for Grayscale's ethereum Mini Trust and the Bitwise app.
FOX Business Reporter Eleanor Terrett twitter.com/EleanorTerrett/status/1793318042870386949″>I declare that The SEC and issuers are now engaging in discussions regarding S-1 registration statements. Bloomberg ETF analyst James Seyffart believes the funds may not launch for weeks or months after initial approvals.
ethereum Market Data
At the time of publication 9:49 pm UTC May. 22,ethereum is ranked number 2 by market capitalization and the price is below 0.05% during the last 24 hours. ethereum has a market capitalization of $449.68 billion with a trading volume of 24 hours $25.33 billion. More information about ethereum ›
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