Ethereum Price Analysis: Ethereum Price Slips as Hong Kong Allows Staking in ETH ETFs - What's Next for ETH?

Ethereum Price Analysis

Ethereum (ETH), which is the king of all the alternative coins saw a 3.56% price drop on Friday June 7th according to data from Tradingview and is currently trading at $3,693 following news that Hong Kong asset managers are allegedly working toward incorporating staking features into their spot Ethereum ETFs. In the last 24 hours, ETH has dropped 2.95% with its market cap at $444 billion while its volume has gained by 39% to $18 billion

ETH Price Chart: Coinmarketcap
ETH Price Chart: Coinmarketcap

This move could make Hong Kong ETH ETFs attractive to investors worldwide especially as the U.S Securities and Exchange Commission (SEC) has signaled that it will not permit issuers to offer staking if or when spot ETH ETFs launch in the U.S

Meanwhile the asset manager ProShares submitted a 19b-4 form with the SEC on Thursday stating intentions to issue spot Ethereum ETFs on the New York Stock Exchange (NYSE).

ProShares joins the list of prospective spot ETH ETF issuersincluding Van Eck, Bitwise, BlackRock, Fidelity, Franklin Templeton, Invesco & Galaxy, Grayscale and 21Shares, whose on May 23 their 19b-4 filings were approved by the SEC

ETH Technical Analysis

Despite the recent drop on Friday Ethereum is trading in a bullish flag pattern. The MACD indicator saw a bearish crossover after the MACD line crossed below the signal line. However if bulls can defend the bullish flag support ETH could gain bullish momentum and potentially breaking out and closing above the flag

ETHUSD Price Chart: TradingView
ETHUSD Price Chart: TradingView

A close above the flag could push ETH to test the yearly high at $4,093.88 and rally in an attempt to create a new all time high after the current record of $4,862. On the other side a drop and close below the bullish flag could invalidate bullish pressure in the near term.

The exponential moving averages (EMAs) are all bullish with the EMA 50 at $3,352, EMA 100 at $3,425 and EMA 200 at $2,922  indicating bullish momentum.

On-chain metrics from the block show that the number of new addresses on the Ethereum Network (Monthly) recorded an all-time high of 3.83 million over the last 12 months suggesting growing adoption.

Source: Theblock

However Santiment shows a rise in supply on exchanges indicating short term sell pressure. The Total Open Interest in USD for ETH also showcase improved statistics recording new highs over time.

Source: Santiment

While ETH faced a slight decline amid Hong Kong plan to allow staking in ETH ETFs, technical and on-chain metrics suggest bullish potential if ETH can defend the bullish flag pattern. As more details come up in regards to Hong Kong staked ETH ETFs and the SEC stance on spot ETH ETFs in the U.S, Ethereum could experience significant volatility in the near future.

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