An Ethereum ETF application has been filed in the USA; if this ETF gets approved, the Ethereum price will go crazy.
Ethereum hit another new all-time high yesterday; we got rejected at around four thousand dollars. We got as high as $3,958, which is an incredible price high for Ethereum. It looks like the good old days of purchasing Ethereum under $200 are over; we now get single daily candles that are twice the previous price of Ethereum in one day.
One thing to note is that this rally that occurred during the past few days for Ethereum has been beyond belief; the moment we broke three thousand dollars, Ethereum shot straight up to four thousand dollars within a week.
Have in mind that the last few times we saw a major run-up of this kind for Ethereum, when we saw the RSI being heavily overbought as it is in the chart above, several corrections followed the rally. There is a possibility that we may see a similar situation happening now that we have been rejected at the four thousand dollar level.
The average price correction from an overbought reading of this kind has been around 25%. If we saw Ethereum coming down 25% from its new all-time highs, we may be getting a retest of around three thousand dollars. It is only left for us to sit back and observe how this all plays out within the next few weeks.
This is a regular occurrence in the market; we have a major run-up, a little correction, a consolidation period, and another run-up. If that happens, it is a good thing because you may have a better chance to get good buying opportunities.
VanEck has filed for an ETF for Ethereum; this is good news. There are a few reasons why this news is exciting, and this is also the first Ethereum ETF application in the USA. We may not see this Ethereum ETF approved anytime soon, but the fact that it has been filed is a huge deal.
There are currently four Bitcoin ETFs and three Ethereum ETFs in Canada; with those Ethereum ETFs in Canada, within 17 days, they are almost at half a billion dollars worth of Ethereum.
This is very amazing and exciting to see because it is showing that there is a demand to get people’s hands-on ETF products.
One thing to note is that Canada only accounts for about two percent of the global stock market while the United States accounts for over 50% of all global stock evaluations. This means that when we get an ETF approved for Ethereum in the USA, the price will go crazy. We may see up to 12 to 13 billion dollars worth of Ethereum locked up for financial products.
Although, some people believe that after the Bitcoin and Ethereum ETF approval, we will go straight into a bear market the same way it happened in 2017 after the futures releases for Bitcoin.
