Ethereum ETF: The Next Rumor To Buy After SEC Hack?
Yesterday’s fiasco involving the SEC, Twitter (X), and Bitcoin ETFs has revealed where crypto investors might flock to next: Ethereum. Here’s a breakdown of what happened, and why the Ethereum ETF could be crypto’s next big trade.
What happened with the SEC hack?
Yesterday was a wild day in crypto. As verified by X, the X account of the US Securities and Exchange Commission (SEC) was compromised. This resulted in an unintended tweet.
The tweet (now deleted) stated that the SEC had approved several spot bitcoin exchange traded funds (ETFs). But in actual fact, they did not (though they might still approve them today). The SEC is apparently going to work with law enforcement to get to the bottom of things. People in high places are also calling for the SEC to investigate itself for market manipulation.
Time will tell what really went down with the SEC hack on Tuesday. But it still seems highly likely that the SEC will approve the spot Bitcoin ETF soon – maybe even today. VanEck CEO stated on CNBC yesterday that their spot Bitcoin ETF will start trading on Thursday, and the ETF applicants have already published their ETF fee schedules.
What does this have to do with Ethereum and an Ethereum ETF?
There’s been a lot of speculation whether the Bitcoin ETF approval would be a sell the news event for bitcoin. And you can think of yesterday’s price action surrounding the fake news like a game of poker. The market revealed its hand: that smart investors planned to use the event to trade in their bitcoin for ether. And with the hype of the bitcoin ETF now coming to a close, the next big rumor to buy could be the Ethereum ETF.
Here’s a chart of ether priced in bitcoin (ETHBTC), showing a bullish engulfing candle yesterday.
During the day, the price dropped below the June 2022 support level of around 0.05 bitcoins per 1 ether. But as the SEC scandal unfolded, the price quickly reversed higher. And it finished the day back above that June support level – and above the high of the previous day.
Think of this like Rocky Balboa landing his first punch on Ivan Drago in the second round of the movie “Rocky IV”. The fight’s not over yet, but Ethereum just cut bitcoin pretty bad.
Meanwhile, Ethereum’s chart in US Dollars is on the verge of breaking out of a 1-month ascending triangle consolidation, which could suggest a breakout higher. This comes after it already broke out of a 1.5-year ascending triangle in December, which I wrote about in September.
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