Ethereum Price Forecast: Anticipating a Rally with the Debut of the First Ether Futures ETF in the US

Crypto News- Ethereum Price Forecast: The cryptocurrency market experienced a surge in optimism last Thursday, fueled by the growing excitement surrounding exchange-traded funds (ETFs). Ethereum, the second-largest cryptocurrency, managed to regain its footing above the critical $1,600 support level and embarked on a notable ascent towards the $1,700 mark. However, it faced resistance when it approached $1,670.

Ethereum Price Forecast: Anticipating a Rally with the Debut of the First Ether Futures ETF in the US

As of Friday, Ethereum’s price has reached $1,648, reflecting a 3% increase in value. The trading volume for Ethereum has surged to $12.2 billion. Despite this positive momentum, its market capitalization remains just shy of the $200 billion milestone.

Valkyrie, a company specializing in alternative asset management with a focus on bridging the worlds of cryptocurrency and traditional finance, has received regulatory approval to seek exposure to Ethereum futures contracts within its existing Bitcoin futures ETF product. This landmark development positions Valkyrie as the first ETF provider in the United States to offer investors exposure to both Ether and Bitcoin futures contracts within a single fund. The ETF will undergo a name change to become the “Valkyrie Bitcoin and Ether Strategy ETF” and will be traded under the ticker symbol BTF. The launch of this new offering is scheduled for October 3.

Meanwhile, another prominent asset management firm, VanEck, has announced its intention to introduce the VanEck Ethereum Strategy ETF (EFUT). This ETF will invest in standardized, cash-settled ETH futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC). Shares of this actively managed fund are expected to be traded on the Chicago Board Options Exchange (CBOE), although the precise listing date has not been disclosed in the statement.

Throughout September, Ethereum’s price displayed a degree of volatility, with limited upward momentum attributed to selling pressure in the $1,650 to $1,710 range. Ethereum experienced periodic dips below the $1,600 support level, with support zones tested at $1,530 (not seen since March) and, more recently, at $1,564.

The recent upswing in Ethereum’s price can be attributed to the approval and anticipation of Ethereum futures ETFs. Ethereum is currently trading above its 50-day Exponential Moving Average (EMA), 100-day EMA, and 200-day EMA. Furthermore, a cup and handle pattern has taken shape since the beginning of September, signaling the potential for a breakout that could propel Ethereum’s price to $1,785. To validate this pattern, buyers must successfully breach the resistance at $1,670, which serves as the neckline resistance of the cup and handle formation.

For traders considering new long positions, it is advisable to initiate them slightly above the neckline, implementing a stop loss at approximately $1,650 or at the 200 EMA, currently situated at $1,635. The positive outlook conveyed by the Moving Average Convergence Divergence (MACD) indicator suggests that buyers currently have the upper hand, and the path of least resistance appears to be to the upside.