Benzinga - by Khyathi Dalal, Benzinga Staff Writer.
With a decision on the approval of spot Ethereum ETFs looking on May 23, the cryptocurrency community is discussing whether Ethereum (CRYPTO: ETH) is ready to rebound.
What Happened: Cold Blooded Shiller kicked off the discussion by referencing a thread he wrote back in November when Ethereum was at a psychological low. He believes the situation now is similar, if not worse, and has decided to go long on ETH again.
"ETH maxi’s are in shambles," he notes, pointing out the euphoria among Solana enthusiasts and the peak of memes. Despite the undeniable poor performance, he asserts, "It’s time."
Jelle provides a more technical outlook, mentioning a forming falling wedge pattern for Ethereum. He believes that if Bitcoin can set a positive path, Ethereum might follow with a significant rally. "Still has some work to do, but if Bitcoin can show the way, it might be time for ETH to pull another crazy rally," Jelle comments.
While Jelle notes that Ethereum is building one of its own falling wedges, another trader, Eugene, brings a strategic perspective, focusing on positioning in the ETH/Bitcoin (CRYPTO: BTC) pair.
He observes the recent apathy and capitulation as ETHBTC hit a 3-year range low. Despite expecting a possible ETH ETF rejection, Eugene is optimistic about a rebound, predicting, "ETHBTC finds its bottom within the 0.043 – 0.045 region during the next 1-2 weeks."
He concludes with cautious optimism, "Only time will tell if I become just another one of those slain ETH bulls."
On the contrary, Altcoin Sherpa offers a different angle, noting that the charts don’t provide much reason to buy ETH, citing resistance levels and negative sentiment among holders. However, he also hints that the prevailing bitterness might be a contrarian buy signal. "Sentiment is horrid," he states, adding, "Which means it’s prob time to buy?"
Also Read: Ethereum Spot ETF Approval Odds Decrease For Later This Month As Analyst Points Out SEC ‘Considering the Security Question for the Asset’
Why It Matters: The potential approval of an Ethereum ETF has been a topic of discussion among market participants. Coinbase’s research suggests a higher probability of approval than the market prices in, which could significantly impact the price of Ethereum.
Furthermore, ARK Invest and 21Shares have also shown interest in Ethereum ETFs. They have amended their filing for a spot Ethereum ETF application, which is currently under review by the SEC. The approval of an Ethereum ETF could unlock new capital inflows and provide regulatory clarity, bolstering Ethereum’s position in the market.
What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: ARK 21Shares Amends Spot ETH ETF Filing: Cathie Wood On Ethereum ETF Approvals
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