- Ethereum surged over $1,600 after reports of a new spot ETF application emerged
- Many traders have since taken long ETH positions
As the week neared its end, another Ethereum spot exchange-traded fund (ETF) announcement emerged. This begs the question – Did Ethereum respond in a manner reminiscent of Bitcoin’s reactions to ETF updates in the past?
Read Ethereum (ETH) Price Prediction 2023-24
Ethereum gets five active ETF filings
On October 20, an interesting document came to light, revealing that InvescoUS and Galaxy have made significant updates to their spot Ethereum ETF submission with the Securities and Exchange Commission (SEC). This latest filing was executed through the Cboe exchange, marking it as the fifth live ETH ETF application.
How Ethereum’s price reacted to the filing
The daily Ethereum chart has been showcasing a seesaw pattern of profitability and losses in recent days. However, there’s a notable trend of several days marked by marginal gains, interspersed with occasional significant losses.
Notably, October 20 saw a remarkable upward surge in price, coinciding with the spot ETF update. On this pivotal day, ETH noted an impressive gain of more than 2.3%, breaching the $1,600-threshold. This hike pushed ETH’s price comfortably above the neutral line of its Relative Strength Index (RSI).
Source: TradingView
At the time of writing, ETH was still holding its value above $1,600, albeit with a slight hike of less than 1%. The RSI continued to trend above the neutral line, though a slight dip was evident too. This price movement served as a clear and compelling indicator of the tangible impact of the spot ETF update.
Ethereum derivatives continue to flash positive signals
According to data from Coinglass, traders have maintained an optimistic outlook on Ethereum’s price potential. This optimism was notably reflected in the consistent positivity of the funding rate in recent days. At the time of this update, the funding rate was approximately 0.049, albeit with a minor decline seen as well. This figure suggested that traders continue to hold long positions on ETH, even in the wake of its recent price surge.
– How much are 1,10,100 ETHs worth today
Furthermore, the asset’s price behavior hinted at the continued prevalence of the “sell the rumor, buy the news” sentiment. This implies that should a spot ETF be approved, it is likely to have an impact on price dynamics. However, the true extent of this impact remains uncertain until such approvals come to fruition.