Will Ethereum do what Bitcoin did? – February 6, 2024
This is Scott with your Chart of the Day. I want to look at the Grayscale Ethereum Trust ( OTCMKTS: ETHE ).
This isn’t for everyone, and I know that because not everyone likes crypto, but here are the facts. Bitcoin was a massive mover in late 2023. In large part because of the forthcoming Bitcoin ETFs, like IBIT ( NASDAQ: IBIT ) and FBTC ( BATS: FBTC ), These two together have taken in, I think around 5 or 6 billion dollars worth of lows just in 2024 alone.
Now, from what I understand, they are going to be launching Ethereum ETFs ( OTCMKTS: ETHE ) sometime this year, maybe around April or May we should know more. But my thought is if Ethereum ETFs ( OTCMKTS: ETHE ) spot ETFs are going to be coming to market. We may see a bit of a run in Ethereum ( OTCMKTS: ETHE ), which if I bring up the chart is pushing through the 50-day moving average and doing it on pretty good volume.
So I think we should definitely keep an eye on the ETHE ETF ( OTCMKTS: ETHE ) as a way to get Ethereum ( OTCMKTS: ETHE ) exposure via the stock market before those Ethereum ETFs ( OTCMKTS: ETHE ) come to market because we may see a bit of a sell-the-news event just like we did with Bitcoin.
Now, the interesting thing is, when we had that sell the news event on Bitcoin we actually saw Ethereum ( OTCMKTS: ETHE ) pop up. So while Bitcoin was falling, Ethereum ( OTCMKTS: ETHE ) was popping up. It pulled back, it chopped under the 50-day moving average here for a minute. And then again, like I said, now back above the 50-day.
I definitely think ETHE ( OTCMKTS: ETHE ) looks actionable in and around that 50-day moving average, that’s a pretty clear level of support on this asset. I want to know if we can get follow-through and maybe a continuation of this move to the upside for a potential test of, even, $28.00 would be pretty darn good for a hype run into the launch of those Ethereum ( OTCMKTS: ETHE ) spot ETFs.
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