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Franklin Templeton, a leading asset management firm with a portfolio exceeding $1.5 trillion, is pushing forward in the cryptocurrency space by listing its spot Ethereum ETF, named Franklin Ethereum TR Ethereum ETF (EZET), on the Depository Trust and Clearing Corporation (DTCC) website. The listing, reflected in the DTCC’s “Create/Redeem” column, marks a significant step in the ETF’s journey, signifying its readiness for creation and redemption.
However, it’s important to note that this listing does not necessarily predict the outcome of Franklin Templeton’s application with the U.S. Securities and Exchange Commission (SEC). The SEC retains the final say, with its decision based on a thorough evaluation of various regulatory criteria and considerations.
SEC Delays Decision on Franklin Ethereum ETF
Earlier this year, on Feb. 12, Franklin Templeton submitted Form S-1 to the SEC, aiming to launch the “Franklin Ethereum ETF” on the Chicago Board Options Exchange. The SEC, however, postponed its decision initially set for review in April, extending the timeline to Jun. 11. This additional 45-day period allows the SEC more time to deliberate on the proposed rule change for listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange.
Here’s the most recent table of other filers that I have pic.twitter.com/xCRRMwK76r — James Seyffart (@JSeyff) February 12, 2024
The race to establish a spot Ethereum ETF has seen entries from other financial giants like BlackRock, Grayscale, VanEck, and ARK Invest. The sector is keenly observing these developments, especially given the different regulatory approach the SEC seems to be taking compared to its previous Bitcoin ETF approvals.
We are excited about ETH and its ecosystem. Despite the midlife crisis it's recently experienced, we see a bright future with many strong tailwinds to push the Ethereum ecosystem forward -EIP 4844 -Alt DA -Community Revitalization -Restaking — Franklin Templeton (@FTI_US) January 17, 2024
In March, Bloomberg ETF analyst Eric Balchunas gave a 35% probability for a spot Ether ETF approval in May. He highlighted the SEC’s currently less proactive approach as opposed to the time during the Bitcoin ETF reviews. Further, SEC Chair Gary Gensler’s unclear stance on whether Ether is considered a security adds another layer of complexity to the approval process.
Implications of SEC’s Upcoming Decision
As the industry awaits the SEC’s decision, the outcome will not only affect Franklin Templeton but could also set a precedent for how digital asset ETFs are treated under U.S. securities law.
Ethereum Price Prediction: Bullish Indicators Suggest Potential Upside
The Ethereum price surged over 5% in the past 24 hours to trade at $3,291.97 at press time.
4-hour chart for ETH/USDT (Source: TradingView)
The Ethereum price has shown some bullish trends in the recent 4-hour charts, presenting potential opportunities for traders. The closing prices have been gradually increasing, with the latest figures showing a slight decline to $3,286.69 after peaking at $3,317.6. This slight dip presents an interesting scenario against the backdrop of key technical indicators and resistance/support levels.
The 9 EMA and 20 EMA values have been on an uptrend, with the 9 EMA recently at $3,246.95 and the 20 EMA at $3,207.42, indicating strong support levels. Prices have consistently stayed above both EMAs, suggesting a bullish market sentiment. The current closing price near the 9 EMA may serve as a dynamic support, reinforcing the strength in the ongoing trend.
The Moving Average Convergence Divergence (MACD) continues to display a bullish signal, with the latest MACD line at 33.80 and the signal line at 15.27, resulting in a positive histogram value of 18.53. This indicates strong buying momentum as the MACD line sustains above the signal line.
The Relative Strength Index (RSI) has been predominantly in the bullish territory, with recent readings above 66, suggesting that while the market is somewhat overbought, the buying pressure remains substantial.
The immediate resistance at $3,329.2 has been tested, with the price peaking just below this level. Further resistance lies at $3,366.09 and $3,405.5, which could be the next targets if the bullish momentum continues. On the downside, support levels are established at $3,274.37 and closely followed by $3,243.51 and $3,240.13. These levels will be crucial if a reversal happens or if the price begins to consolidate.
Potential Trading Strategies
For traders looking to take long positions, maintaining entries near the support levels with a tight stop-loss can maximize gains while minimizing risks. Alternatively, should the price break below the immediate support, it could indicate a shift in momentum, offering opportunities for short trades targeting the next support levels.
The technical indicators for Ethereum on the 4-hour chart suggest a bullish outlook with potential for upward movement if it continues to hold above key support levels. Traders should consider these indicators and levels for planning their entry and exit strategies in the market.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
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