ETH Price Breaks $1,600 as Invesco and Galaxy File Fifth Ethereum ETF

Ethereum’s price rose above $1,600 after the fifth spot ETF application was filed with the SEC. The filing was made by InvescoUS and Galaxy through the Cboe exchange, adding to the four existing Ethereum ETF proposals. The market reacted positively to the news, as traders anticipated a bullish trend for the second-largest cryptocurrency.

OKAY. @InvescoUS & @galaxyhq have now filed their 19b-4 via @CBOE for their spot #ethereum ETF. Final deadline here is unknown for now but likely to be somewhere around the first week of July. https://t.co/5Tn8KfLSww pic.twitter.com/iydLBAHKmE

— James Seyffart (@JSeyff) October 20, 2023

The daily chart of Ethereum showed a pattern of alternating gains and losses, with some days having significant drops. However, on October 20, the day of the ETF update, ETH surged by more than 2.3%, breaking the $1,600-barrier. The price also moved above the neutral line of the Relative Strength Index (RSI), indicating a strong momentum.

At the time of writing, ETH was still trading above $1,600, with a slight increase of less than 1%. The RSI remained above the neutral line, but showed a minor decline. This suggested that the market was still optimistic about Ethereum’s potential, but also cautious about possible corrections.

The funding rate of Ethereum derivatives also reflected the positive sentiment of the traders. According to Coinglass, the funding rate was around 0.049, with a slight decrease. This meant that more traders were taking long positions on ETH, expecting its price to rise further.

The spot ETF filing by InvescoUS and Galaxy was similar to the one submitted by Ark Investment and 21 Shares in September. These filings aimed to provide more access and liquidity to Ethereum for investors, which could boost its demand and value. However, the SEC has not yet approved any of these proposals, and there is no guarantee that it will do so in the near future.

Therefore, Ethereum’s price may still be influenced by other factors, such as technical analysis, market sentiment, and global events. The “sell the rumor, buy the news” strategy may also play a role in the price dynamics. If a spot ETF is approved, it could have a significant impact on Ethereum’s price, but until then, traders should be prepared for any scenario.

Stakers make the Ethereum network more secured while Hodlers make Bitcoin Price more stable with miners protecting the network and there is a possibility that Ethereum can flip Bitcoin in the next Bull run even though we are projecting an institutional cycle with the next one.