Crypto markets bullish on hopes of Ethereum ETF

Bitcoin and other major cryptocurrencies gained strength on Thursday as a bullish sentiment prevailed, offsetting global economic concerns. 

Asset Management Firm VanEck announced on Thursday that they are preparing Ethereum futures ETF. The fund will be called VanEck Ethereum Strategy ETF and will invest in standardized, cash-settled ETH futures contracts.

The Securities and Exchange Commission (SEC) has been hesitating in deciding regarding the future of Bitcoin ETFs, however. BlackRock and other institutions have applied for a Bitcoin ETF, which would bring more institutional and retail money into crypto markets. SEC however has delayed its decision on Bitcoin ETFs putting pressure on Bitcoin price.

Bitcoin price soared on Thursday, rising above the key $27,000 level. If the BTC price declines, support can be found near $26,000, while resistance may be encountered near $28,100. 

Ethereum also gained strength on Thursday, touching the $1,660 level. If Ethereum's price declines, it may encounter support near $1,560, while if it increases, resistance may be encountered near $1,700.

Expectations of further economic tightening have dragged risk sentiment down, putting strain on cryptocurrencies. The Fed kept interest rates stable last week, but delivered a hawkish message, raising the odds of future rate hikes. The Fed’s projections showed that interest rates may rise even further this year and are likely to stay in restrictive territory for a longer period, hindering economic growth. Increases in central banks’ interest rates sour risk sentiment, driving risk assets down.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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