On-chain analytics firm CryptoQuant warned that ETH prices could fluctuate if pending spot Ethereum ETFs encounter uncertainties.It warned that ETH could undergo a “significant price correction” if the SEC denies ETH ETF applications or delays the approval process.Furthermore, high exchange flows could produce ETH price volatility in the coming days. Amid rumors of pending spot ETH ETF approvals, exchange flows reached 62,000 ETH, the highest since March.Despite possible reductions, ETH prices have risen over several days following rumors that the SEC will approve spot ETFs connected to the digital asset.Ethereum was trading at $3,735 as of press time on May 22, up approximately 21% over 24 hours, based on CryptoSlate data.CryptoQuant said traders produced upward price pressure by aggressively opening long positions in the future market in expectations of higher prices, driving ETH open interest from 2.8 to 3.2 million ETH, the highest since January 2023.The activity resulted in a short squeeze and cascading short liquidations.Permanent ETH holders, or accounts that hold but do not sell ETH, additionally produced upward price pressure by purchasing a large amount of ETH. Permanent holders bought more than 100,000 ETH in one day, the highest daily amount since September 2023.Buy orders dominate the ETH perpetual futures market with a taker buy/sell ratio above one, putting further pressure on the market.ETH short position liquidations reached 9,300 ETH, marking the highest hourly volume in 2024 and causing a short squeeze in future markets.The SEC must decide on VanEck’s spot ETH ETF proposal on May 23 but may decide on similar applications simultaneously.The approval process is still underway. On May 21, Cboe filed 19b-4 rule changes on behalf of five ETH ETF issuers. Nasdaq has also amended 19b-4 filings for BlackRock, while NYSE Arca has filed updates for Grayscale’s Ethereum Mini Trust and Bitwise‘s application.FOX Business reporter Eleanor Terrett stated that the SEC and issuers are now entering conversations around S-1 registration statements. Bloomberg ETF analyst James Seyffart believes that funds may not launch for weeks or months after initial approvals.At the time of press 12:46 am UTC on May. 23, 2024, Ethereum is ranked #2 by market cap and the price is down 1.59% over the past 24 hours. Ethereum has a market capitalization of $449.52 billion with a 24-hour trading volume of $25.24 billion. Learn more about Ethereum ›At the time of press 12:46 am UTC on May. 23, 2024, the total crypto market is valued at at $2.57 trillion with a 24-hour volume of $99.86 billion. Bitcoin dominance is currently at 52.95%. Learn more about the crypto market ›Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada’s West Coast.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Follow us on X for your essential dose of daily crypto news and deep dives.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.Rob Marrocco believes crypto ETFs beyond Bitcoin and Ethereum are unlikely without first establishing a futures market or changing regulation.Ripple said Standard Custody CEO Jack McDonald would help the firm achieve its USD-backed stablecoin plans.The examinations will determine S&C’s awareness of FTX misconduct and potential conflicts during SBF’s Robinhood shares acquisition.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.All spot ETH ETFs have yet to launch despite recent developments.ICBC compared Bitcoin to gold and said Ethereum has established itself as “digital oil” capable of powering myriad applications across the web3 ecosystem.DeFillama data shows the platform’s TVL rose 135% despite the attack.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
