In the current situation, an Ethereum price forecast seems particularly interesting. Because Valkyrie Investments is apparently optimistic and is aiming for its own Ethereum Futures ETF. But what is the significance of Donald Trump’s unexpected move to hold $2.8M worth of Ethereum holdings? And why are massive Ethereum transfers attracting attention and what is the current economic environment telling us? In our ETH analysis, we dive deep into these questions and try to answer some of them. Do not miss any important factors in the Ethereum price prediction.
Valkyrie continues efforts on Ethereum Futures ETF
Asset management firm Valkyrie Investments officially has one Application for an Ethereum Futures Exchange-Traded Fund (ETF) filed with the United States Securities and Exchange Commission (SEC).. It is important to emphasize that Valkyrie’s proposed ETF will not hold Ethereum directly. Instead, he aims to acquire a variety of Ethereum futures.
The importance of Ethereum in the economy was highlighted in the motionemphasizing its usefulness as both a currency and a digital asset, and its currently limited use for commercial and individual transactions. The SEC is currently reviewing more than 10 Ethereum ETF applications.
The broader investment community is watching these developments closely, particularly with the forthcoming start of Ether Strategy ETF (ETHU) by Volatility Shares. Scheduled for October 12, 2023this launch will be a historic event and the first ETH-based ETF in the US to mark. A precedent was set in 2021 with ProShares’ Bitcoin Futures ETF, which amassed an impressive $1.3 billion in assets.
The Successful launch of ProShares crypto ETF, indicates good odds for an Ethereum Futures ETF. One Approval could lead to an influx of institutional funds and potentially boost Ethereum’s price. However, the SEC’s consistent caution, as seen in their reluctance to approve a Bitcoin Spot ETF, shows one challenging regulatory environment for crypto ETFs.
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Trump’s Ethereum Holdings: A Signal for Crypto Investors
Donald Trump, the former US President and incumbent presidential candidate, holds Ethereum (ETH) worth $2.8 million. This is in contrast to the previously estimated $250,000 and $500,000. In addition, it is a contradicting his previous viewsin which he called Bitcoin “not money” and criticized its appreciation as “made out of thin air”.
In doing so, he alone Earned $4.8M in royalties from his NFTs. The first NFT collection he started in December 2022, which sold out very quickly. But this year, too, Trump has built on his success and a more released in April 2023what also one followed his wife Melania. Thus, both have recognized the potential of cryptoassets and were apparently also able to become one More crypto-friendly stance be moved. Added to that increasing importance of cryptocurrencies in the political debate ahead of the next US election.
For Ethereum investors, Trump’s change of heart and its involvement in the crypto space sends a strong signal be. His status as a prominent figure now choosing cryptocurrencies might Increase trust in Ethereum. Because his commitment is a possible indicator that Cryptocurrencies more and more into the mainstream pass over and be recognized by a wider audience. In particular, this could encourage institutional investorsto invest in Ethereum, which could increase demand and potentially increase the price of the currency.
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Large Ethereum transfers hint at possible sell-off
On August 16, 2023, the well-known cryptocurrency monitoring platform reported Whale Alert significant Ethereum (ETH) transfers. Two consecutive transfers were sent to the GateIO exchange: First, 15,000 ETH, worth about $27,415,292, and shortly after, 14,000 ETH, worth about $25,587,606, were transferred.
Both transfers came from unidentified wallets. Such massive transfers to an exchange can often be interpreted as a sign of an impending sale of the cryptocurrency in question.
Difficult economic environment
The main drivers of the stock market rally were the expected rate cuts by the Fed, the recovery of the Chinese economy after lockdowns were eased and the AI economic miracle. If these do not arrive, there could be strong sales again.
Currently, however, the circumstances are becoming increasingly cloudywhich among other things last to the rising capital market interest rates, the weakening of the labor market, the strict lending regulations, the possible downgrading of China’s credit rating, the strength of the dollar and the possible persistence of high key interest rates.
In addition, falling inflation has again come into question as the Cleveland Inflation Now Tracker for August Inflation rate expected to rise by 0.79%. The sharp increase in the oil price has not been taken into account in this so far.
Seasonality is also likely to have a negative impact, as August tends to see money draining out of the markets. There have already been major corrections on the stock markets, with the S&P500 now being affected by the lower end of trend channel broken and has to defend an important price level. It looks like the sell off will continue, which is likely as well negatively impacted the crypto market and thus Ethereum.
The first signs are already noticeable, since the Fear-and-greed index of the crypto market is trending more and more towards fearwhich could lead to panic selling.
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Ethereum Price Prediction
The Ethereum course could a rally of almost 101% since the end of November 2022 register. There was even a temporary breakout from the trend channel, although it was a bull trap. ETH then corrected to the lower end of the trend channel. Then one followed Recovery, which, however, collapsed again halfway, which should be interpreted bearishly. Likewise, the daily trading volume has also decreased massively since then, heralding an impending breakout, which is likely to resolve to the downside.
However, the ETH rate is currently still up Support from the lower trend channel end and the 200-day SMA. However, there are already signs of a death-cross formation, which sales up to the $1,366 range not unlikely might. Depending on the development of the general economic situation and sentiment, there could be even stronger price setbacks, whereby they however, not likely below the $935 range should go.
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About the author: Simon Feldhusen first came into contact with the stock market 17 years ago and has been dealing intensively with trading, cryptoassets, stocks, P2P, corporate finance, finance and entrepreneurship on a daily basis for more than 8 years. He has also been working as a copywriter and ghostwriter in the financial sector for several years. During this time he has acquired a diversified knowledge through various training courses on the financial markets and following the daily news. Since then, not a day has gone by that he hasn’t engaged with the markets. He publishes for Finanzen.net, ETF-Nachrichten.de, Coincierge.de and P2E News.com.