💥 Ethereum ETFs may begin trading by July

Crypto Rand

7 min readJun 17, 2024

Let’s Dive Into It!

Happy Monday dear subscribers! In today’s Newsletter, Ethereum ETF is coming!

In today’s bulletin, we are covering:

Surfing the Market, with analysis about MidCap index and the Layer2 index
Don’t miss the News about Ethereum ETF, and Bitcoin’s Impact on the Election
Taiko is under the spotlight.
A short article about What is beyond the ATH?
Our selection of the best Gems on X

The Crypto market is waking up again with a pretty weak feeling. Giving back the gains of the last 2 days. Focusing on the Mid Caps Index we can see how after the local breakout push it’s being unable to consolidate here.

No critical breakdown for now, main structure remains healthy, but worrying about the lack of volume and strength on every bounce.

After the local breakdown on the Layer 2 Index, price went straight for the main horizontal support once again. The $3,7 level is critical:

Spot Ether ETFs Expected to Launch by Early July

Spot Ether exchange-traded funds (ETFs) could begin trading in the U.S. by July 2, according to Bloomberg ETF analyst Eric Balchunas. The SEC’s light comments on applications and quick feedback turnaround suggest an early launch before the July 4 holiday.

Spot Ether ETFs potentially trading by July 2, per Bloomberg ETF analyst Eric Balchunas.
SEC’s staff comments on S-1 applications were “pretty light”, indicating quick approvals.
SEC Chair Gary Gensler suggests approvals could take until the end of September.
The launch depends on how quickly issuers can address SEC comments.
Ether’s price movement post-ETF approval may not mirror Bitcoin’s due to valuation complexities.
Stephen Richardson of Fireblocks argues Ether’s use cases are harder to value, affecting initial inflows.

However, SEC Chair Gary Gensler provided a broader timeframe, indicating approvals could extend to the end of September. Market responses and inflows may differ from Bitcoin’s previous ETF launch due to Ethereum’s unique valuation challenges.

Crypto’s Role in 2024 Presidential Election: Mark Cuban and Biden Administration Discuss Future Policies

Billionaire Mark Cuban believes crypto will play a significant role in the 2024 presidential election.

In response, the Biden administration is set to join a roundtable discussion on crypto policy in early July, organized by Democratic Rep. Ro Khanna.

Mark Cuban asserts crypto’s strong role in the 2024 presidential election.
Biden administration to discuss crypto policy in a roundtable in early July, hosted by Rep. Ro Khanna.
Discussion aims to keep Bitcoin and blockchain innovation in the U.S.
Rep. Khanna supports the FIT21 bill for regulatory clarity in crypto.
Cuban warns that Biden’s stance on crypto could affect his re-election chances.

The focus will be on keeping Bitcoin and blockchain innovation in the U.S. and supporting regulatory clarity.

Taiko

This week the spotlight is set on TAIKO, “a based rollup inspired, secured, and sequenced by Ethereum”

The goal of Taiko is to scale Ethereum while upholding the root principles of security, permissionless, and decentralisation. The primary objective of Taiko, as a Type 1 ZK-EVM, is to prioritise Ethereum-equivalence over the at which ZK-proofs are generated.

Vitalik defined the 4 types of ZK-EVMs back in Aug 2022 (see the full document here )

This Ethereum-equivalence eliminates the requirement for developers to rewrite their dApps, which translates in a smooth transition that can enhance Taiko’s adoption among developers. Specially when not all ZK-EVMs permit EVM code to function without modifications.

As with any ZK protocols, Taiko leverages ZK-Rollup technology as a means to enhance transaction processing speed and lower fees while enhancing security and privacy. The Taiko’s code is open sourced and hosted on GitHub

The token $TAIKO was launched recently (TGE 5th Jun 2024) and it already has a $147 M market cap with just 6% of the tokens in circulation from the total 1 billion tokens. The vesting calendar is not fully known yet. There was an airdrop from testnet participants.

The project raised up to $37M in different rounds with firms like Sequoia China, Token Bay Capital and Generative Ventures among others.

If you want to investigate more I encourage you to use their official Twitter and website, and see you next week with more research!

What is beyond the ATH?

All Time High, the coveted destination of every chart… but what happens next? What is above that historical maximum? How do we know how far it can go? Join me in answering these questions, but first, fasten your seatbelts!

When we analyze a chart (usually using technical analysis), we often chart a path toward its all-time high (ATH) — the peak where the price reached its highest value before falling.

This ATH typically serves as the target to reach and is logically considered a resistance level since the price tends to repeat patterns that caused it to retreat previously. Therefore, it’s expected to encounter some selling pressure there.

However, the truly interesting part emerges beyond the ATH, in that area where price discovery occurs as it has never been before… where no man has gone before is the adage often used on Wall Street.

In this territory, we have no previous resistances to fear, but that doesn’t mean the price will rise indefinitely. So, what sets a limit when it surpasses an ATH? There are multiple answers, but we can approach it with a few tools:

- Round numbers: These often serve as psychological resistance and work well when we are in an ATH.

- Dynamic resistances: This refers to those trend lines that extend over time and can give us a roadmap to follow and respect.

- Fibonacci: The crown jewel, using the Fibonacci extension tool to project price targets, which tends to be very precise, especially above an ATH.

- Moving average deviation: We can estimate a possible correction when the price tends to stray too far from the average of the analyzed moving average, for example, 20 sessions on a daily chart.

Many investors stop looking at an asset when it is at its highest because they believe they missed the train and that it has already risen. This is usually a mistake since most of the time, if the chart has broken a resistance level, it is likely to continue rising, especially when the fundamentals support the increase.

It is true that an asset at its ATH often causes vertigo, but at the same time, it demonstrates the asset’s strength… half full or half empty, everyone will see it as they choose.

If we take an example that everyone knows, Bitcoin (BTC), we see how it is very close to breaking the previous ATH, raising many doubts about how far it can go. According to Fibonacci, we can project 90K; by round number, of course, the famous 100K; and by trend lines, around 115/120K.

We should not let the fear of losing what we have gained invade us, a sentiment that often appears during rises, something Livermore explained very well 100 years ago. We should have that fear when an asset cannot find a bottom and, therefore, continues to fall.

Far from generating doubts, breaking an ATH should confirm the strength of an asset, and there is nothing more bullish than turning a resistance into support!