The approval of the Ethereum ETF was not expected as soon as it appeared. However, the market reaction is probably not what most Ethereum bulls expected. In its current state, Ethereum barely surpassed the local resistance level and even retreated further.
The approval of the Ethereum ETF was not expected as soon as it appeared. However, the market reaction is probably not what most Ethereum bulls expected. In its current state, Ethereum barely surpassed the local resistance level and even retreated further.
So what is holding Ethereum back?
Only 19b-4s are approved, not S-1s
The current approval refers only to 19b-4 and not the more important S-1. In simple terms, this means that while a step has been taken towards greater acceptance, more important and impactful approvals are still pending. The market knows this and won’t get too excited until the S-1s also get the green light. It is a classic case of the market pricing expectations: partial approval is good, but not innovative.
Gamza Khanzadaev“delegated authority”
This ETF approval was handled by the Division of Trading and Markets using “delegated authority.” This means a commissioner could still challenge the decision within the next 10 days. There is a sense of uncertainty hanging over the market, knowing that this approval might not be the final word. It feels a little like they’re trying to sneak this by, keeping the vote a little under the radar due to its political nature.
Alex DovbnyaThese points create a scenario where Ethereum ETF approval, while positive, is not a guaranteed ticket to the moon. There is still political maneuvering and more approvals are needed to solidify the measure. Furthermore, against a backdrop of broader regulatory and economic uncertainties, investors are playing it safe for now.
Despite the lack of momentum, Ethereum still appears well-positioned for a rally; Above numerous key technical resistances, cheap network fees could attract more activity and a price level just above the main threshold of $4,000.
