Ether, the native token of Ethereum, has seen a sharp rebound in the past 24 hours, driven by institutional investors capitalising on its early July downtrend. The second-largest cryptocurrency rose by as much as 10.11% to reach $3,113 on July 9, from a local low of around $2,830 a day prior.
The rally coincided with CoinShares’ weekly report, which revealed that Ether-linked investment funds saw net inflows of $10.2 million for the week ending July 5. This inflow occurred despite a 14.70% decline in ETH’s price, prompted by selling pressure from Mt. Gox and the German government. CoinShares researcher James Butterfill noted that institutional investors viewed the market decline as a buying opportunity, suggesting they expect the market to resume its uptrend soon.
ETH/USD daily price chart. Source: TradingView
Renewed Optimism from Ethereum ETF Filings
Renewed optimism also stems from amended filings by VanEck and 21Shares for Ethereum exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC). Both firms have submitted updated versions of their Ether ETF filings, indicating launches “as soon as practicable after the effective date” of the registration.
Source: X
The SEC had previously approved spot Ether ETF 19b-4 filings from eight asset managers, including VanEck, 21Shares, and Bitwise. Experts anticipate that final approvals could be granted as early as this month. SEC Chair Gary Gensler hinted during a June Senate Banking Committee hearing that the commission might approve the S-1 filings “sometime over the course of this summer,” though he did not provide a specific date.
Technical Analysis: ETH Price Rebound
Ethereum’s rally is part of a broader rebound that started after testing the 50-week exponential moving average (EMA) at around $2,788 as support. This level has previously capped ETH’s downside attempts. The rebound helped Ether break above the neckline of its prevailing double-bottom pattern, a bullish reversal indicator.
Source: SEC
The double-bottom pattern suggests a target price of around $3,300, up 6.40% from current levels. However, a decline below the neckline could invalidate the bullish setup, increasing the likelihood of ETH retesting $2,830 in July.
In summary, Ether’s recent price surge is driven by institutional buying during its downtrend and renewed optimism from Ethereum ETF filings, alongside a technical rebound from key support levels.
