Ethereum Price Slides 5% as SEC Postpones ETH ETF Decision
SEC delays Ethereum spot ETF decision for June, leaving Honk Kong in the lead. ETH price falls with more downside potential.
Key Takeaways
- SEC delays U.S. Ethereum ETF decisions to June.
- Grayscale announces Mini Ethereum Trust plan.
- Hong Kong set to trade ETH ETFs with competitive fees
The United States Securities and Exchange Commission (SEC) has postponed its decisions on the proposed spot Ethereum (ETH) exchange-traded funds (ETFs) by Grayscale and Franklin Templeton to June 11th and 23rd, respectively. This delay allows the SEC more time to consider Grayscale’s Ethereum Trust’s conversion to an ETF. The commission will reviews modifications and concerns presented in an amendment. Meanwhile, the price of Ethereum fell slightly over 5% from its April 24’s high of $3,300 to a daily low of $3,111. As the market slumps on April 25, followed by a bearish sentiment, what’s next for ETH?
Ethereum Spot ETF Delayed Once More
Grayscale revealed plans to establish a Mini Ethereum Trust derived from its main Ethereum Trust, ETHE. This move would potentially offer lower fees. The announcement came on the same day the SEC announced the delays.
Other industry activities include routine filings and amendments by multiple issuers, including BlackRock. However, analysts such as Bloomberg’s Eric Balchunas remain skeptical about imminent approvals.
Hong Kong Could Be The First
Anticipation shifts to Hong Kong, where spot ETH ETFs are set to start trading on April 30 with competitive fees. This comes during growing pessimism about US approvals. Indeed, this was indicated by a drop in betting odds on Polymarket for a May approval of US ETH ETFs.
China Asset Management Co., Harvest Global Investments, Bosera International, and HashKey Capital, all of whom will have BOCI-Prudential Trustee Limited as their custodian, have received approval for ETFs. These funds aim to mirror the performance of Bitcoin and Ethereum based on the CME CF Bitcoin Reference Rate and the CME CF Ether-Dollar Reference Rate, respectively.
According to data shared by analyst James Seyffart, the management fees for these ETFs vary significantly, with China AMC charging 0.99%, Bosera and HashKey at 0.6%, and Harvest Global introducing a competitive edge with a six-month fee waiver followed by a nominal fee of 0.3%. Seyffart predicts that these varying fee structures could lead to a fee war among ETF providers in Hong Kong, especially with Harvest Global setting a notably lower fee post-waiver.
ETH Price Analysis
On March 11, Ethereum crossed the $4,000 mark, peaking at around $4,100, marking the high point of its latest upward trajectory. However, by March 20, it had retreated to $3,062. A subsequent recovery saw Ethereum’s price rise to $3,730 by April 8, though this proved to be a short-lived rally as the price then fell to a lower level.
By April 13, Ethereum had declined further to $2,840, hitting the 0.786 Fibonacci extension level. On its subsequent recovery, it found resistance at the 0.5 Fibonacci level. This, in turn, served as resistance on April 25, causing another downturn.
Technical analysis, including wave patterns and the daily chart’s Relative Strength Index (RSI), suggests Ethereum might drop further to $2,750, mirroring the magnitude of a previous decline. This is more on the optimistic side, as the decrease could continue to the 1.618 Fibonacci extension. This would bring ETH down to $2,100.
This decline is expected to complete the ABC correction pattern as part of the fourth wave in a five-wave impulse sequence that began in mid-October last year. This sets the stage for another potential upward movement before this sequence concludes and a higher-degree fourth wave commences.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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