Ethereum (ETH) is up over 3% on Friday, following moves from institutions and investors ahead of a potential spot ETH ETF launch on July 23.
Ethereum has been one of the top trending digital assets this week following rumors of the Securities and Exchange Commission (SEC) giving the final approval for ETH ETFs to launch on Tuesday.
With recent developments, institutional and retail investors are making strategic moves ahead of the launch. Here are the latest news surrounding the largest altcoin:
Doing a thread on the situation for @Grayscale's spinoff for $ETHE & $ETH because I've gotten about a million questions on it. The mechanics will be essentially the same for $GBTC & $BTC spinoff. If you own 1,000 shares of $ETHE, you should receive 1,000 shares of mini $ETH. 1/ pic.twitter.com/Er66mj5L46
— James Seyffart (@JSeyff) July 19, 2024
Ethereum is trading around $3,500, up 3.4% on the day. ETH traders have seen $27.35 million worth of liquidations in the past 24 hours, with long and short liquidations accounting for $15.24 million and $12.11 million, respectively.
ETH appears to be taking the shape of a bull flag, as seen in the chart below. With ETH ETFs slated for a potential launch on Tuesday, ETH could rally above the $3,977 resistance, which it has failed to overcome since descending from a yearly high seen in March.
ETH/USDT 8-hour chart
A successful move above this level could see ETH flip its yearly high of $4,093 to set a new all-time high around the $5,627 price level.
ETH could decline briefly to $3,364 to liquidate $40.59 million worth of longs before rebounding.
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.