Ethereum has slowly been backtracking this week after a positive price rally at the start of the week alongside Bitcoin in particular.
Following the emergence of massive on-chain activity for ETH over the past week all indications were that the top contender to dethrone BTC was about to make a move.
Sadly, the technicals have not yet lived up to the outstanding on-chain occurrence, such as massive spikes in Daily Active Address Acitivty and Token Age Consumed.
But still, the fundamentals look particularly promising if we see a spot ETF approval for Bitcoin, so I thought it might be interesting to look at ETH in-depth.
The big industry hope is that we will get the first spot bitcoin ETF sometime between mid-October and mid-March.
Some crypto enthusiasts even hope that we will get approval for all spot ETF applications, including Grayscale at the same time.
Recently, Bloomberg Intelligence analysts upped their chance of US spot bitcoin ETF approval before the end of 2023 from 65% to 75%.
This month Ark Invest and 21Shares announced that aim to introduce their own ETH spot ether offering to the market.
So far, the SEC spokespeople have declined to comment on the filing, but it's certainly lingering in the back of ETHA trader's minds. The potentiality I mean.
Canada, for example, became the first country to approve a spot ether ETF in April 2021. A couple of months after it allowed spot bitcoin ETFs to start trading.
Speculation will almost certainly massively ramp up for an ETH spot ETH product if we see a BTC product approved.
Technically, the Supertrend indicator shows that ETH needs to hold above the $1,416 level in order to sustain the weekly bull trend.
Source: Tradingview.com
Using the same indicator we can see that ETH must overcome the $1,762 level to switch the daily trend back into full bull mode again.
Source: Tradingview.com
Interestingly, the monthly targets look superb for ETH if we do see an ETF approval. I would expect a price ramp to no less than $3,000.
On the on-chain front, things have slowed down dramatically since the post-Fed pullback. Daily Active Address Activity has plunged after hitting a new yearly high a week prior.
Source: Santiment.net
Also, Development Activity remains very subdued, especially if we consider where it was trading in February.
Source: Santiment.net
ETH also is suffering from the same problems as Bitcoin right now, meaning a distinct lack of whale interest, but massive retail interest.
Overall, ETH needs some positive news via BTC over the coming weeks as it is currently at risk of suffering more losses if the price continues to hold below the $1,630 level this week.
