ETH Futures ETF Overshadowed by Rate Hike Fears

The Thursday Overview

Ethereum (ETH) fell by 0.36% on Friday. Following a 1.19% loss on Thursday, ETH ended the session at $1,654. Despite the bearish session, ETH avoided sub-$1,600 for the third consecutive session.

Fed Chair Powell Overshadows ETH ETF News

On Friday, Fed Chair Powell weighed on investor sentiment. Speaking at the Jackson Hole Symposium, the Fed Chair left the door open to further rate hikes before hitting the brakes. ETH and the broader market showed sensitivity to the comments, with ETH falling to a session low of $1,636 before steadying.

The hawkish commentary overshadowed ETH-Futures ETF news as more players looked to enter the Ether-Futures ETF space. Ark Invest and 21Shares applied to launch an ETH-Futures ETF on Thursday, the ARK 21 Shares Active Ethereum Futures ETF (the Fund).

As with other Futures ETFs, the Fund does not invest directly into ETH, with the application clearly stating,

“The Fund does not invest directly in ether or other digital assets to maintain direct exposure to ‘spot’ ether.”

Ark Invest and 21Shares applied after the news hit the wires of the SEC planning to approve ETH-Futures ETFs within this year.

While the launch of ETH-Futures ETFs will not fuel an influx of institutional money into the ETH spot market, the approval would raise the chances of an ETH-Spot ETF market.

However, investors will monitor progress toward the launch of BTC-Spot ETFs before considering the chances of an ETH-Spot ETF market.

Staking Statistics Send Bullish Signals

According to CryptoQuant, staking inflows increased from 55,904 on Thursday to 57,376 on Friday. The inflows on Friday were at the upper level of historical trends.

(Values are in ETH unless otherwise stated.)

The overnight withdrawal profile was bearish. Principal withdrawals spiked before returning to normal levels. However, withdrawal projections for the morning session are bullish. Projections show principal ETH withdrawals will sit at normal withdrawal levels this morning.

On Friday, the net ETH staking balance stood at a 52,440 surplus ($87.26 million), up 232.09% over 24 hours. Deposits totaled 60,930 versus withdrawals of 8,490.

According to TokenUnlocks, total pending withdrawals stood at 67,100, equivalent to approximately $111.35 million. Notably, the staking APR stood at 4.87%, down 0.41% over 24 hours. The continued decline in the staking APR and elevated total pending withdrawals are bearish. However, the surge in the net staking balance was bullish.

(Values are in ETH unless otherwise stated.)

Ethereum Price Action

Daily Chart

The Daily Chart showed ETH at the lower level of the $1,670 – $1,650 support band. ETH pulled back from the 50-day and 200-day EMAs, sending bearish near and longer-term price signals.

Looking at the 14-Daily RSI, 30.69 reflects a bearish sentiment. The RSI aligns with the EMAs, signaling a fall through the lower level of the $1,670 – $1,650 support band to bring sub-$1,600 into play. An ETH move through the upper level of the $1,670 – $1,650 support band would give the bulls a run at the EMAs and the $1,795 – $1,815 resistance band.

4-Hourly Chart

Looking at the 4-Hourly Chart, the ETH/USD continues to face strong resistance at $1,700. ETH sits above the lower level of the $1,670 – $1,650 support band. Significantly, ETH remains below 50-day and 200-day EMAs, reaffirming bearish near and longer-term price signals.

The 14-4H RSI reading of 46.46 reflects a bearish sentiment, with selling pressure outweighing buying pressure. Significantly, the RSI aligns with the EMAs, signaling a fall through the lower level of the $1,670 – $1,650 support band to target sub-$1,600.