Ether’s surge today is mainly driven by institutional investors buying during its early-July decline and growing optimism from new Ethereum ETF filings.
Ethereum’s native token, Ether (ETH), has experienced a sharp rebound in the past 24 hours. This increase is attributed to institutional investors taking advantage of its early July downtrend to accumulate the second-largest cryptocurrency.
Moreover, renewed optimism has been sparked by amended filings for Ethereum exchange-traded funds (ETFs) by VanEck and 21Shares with the U.S. Securities and Exchange Commission (SEC).
Ethereum Funds See Positive Inflows
Ether’s price has surged by as much as 10.11%, reaching $3,113 on July 9, up from its local low of around $2,830 the previous day.
This rally coincided with the release of CoinShares’ weekly report, revealing that Ether-linked investment funds saw inflows of $10.2 million in the week ending July 5. During that same period, ETH’s price dropped by about 14.70%, influenced by selling pressure from Mt. Gox and the German government.
CoinShares researcher James Butterfill noted that institutional investors viewed the market decline “as a buying opportunity,” indicating they expect the market to resume its upward trend in the near future.
VanEck, 21Shares Submit Amended Ether ETF Filings to SEC
Additionally, VanEck and 21Shares have submitted amended versions of their Ether ETF filings to the SEC as part of their efforts to gain approval in July.
21Shares also submitted an amended form for its Core Ethereum ETF. Although neither filing specified an exact launch date on U.S. exchanges, both indicated that the ETFs would launch “as soon as practicable after the effective date” of the registration.
In May, the SEC approved spot Ether ETF filings from eight asset managers, including VanEck, 21Shares, and Bitwise. Experts anticipate that final approvals could be granted as early as this month.
During a June Senate Banking Committee hearing, SEC Chair Gary Gensler suggested that the commission might approve the filings “sometime over the course of this summer,” though he did not provide an exact date.
ETH Price Technical Rebound
Ethereum’s ongoing rally is part of a rebound that started after testing the 50-week exponential moving average (50-week EMA) at around $2,788 as support. This support level has historically limited ETH’s downward moves.
The rebound helped Ether break above the neckline of its prevailing double-bottom pattern, as seen on the four-hour (4H) chart.
A double-bottom pattern is considered a bullish reversal pattern. It completes when the price breaks above its neckline resistance and rises by the maximum distance between the pattern’s lowest point and the neckline.
Summary Review: Ether’s price increase today is driven by a combination of strategic institutional buying during its downtrend and positive developments in the ETF approval process. As investors and analysts look forward to potential ETF approvals and ongoing positive market sentiment, the outlook for Ethereum remains optimistic.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
