The crypto market turned bullish on Thursday as traders capitalized on the growing hype surrounding exchange-traded funds (ETFs). Ethereum price managed to surpass the $1,600 support level and made a sharp climb towards $1,700. However, it encountered resistance upon reaching $1,670.
On Friday, Ethereum saw a 3% increase, reaching $1,648, with a trading volume of $12.2 billion. Despite this positive movement, its market capitalization remains slightly below the $200 billion mark. Valkyrie, a company specializing in alternative asset management, received approval to seek exposure to Ether futures contracts within its Bitcoin futures ETF product. This makes Valkyrie the first US ETF to offer exposure to both Ether and Bitcoin futures contracts.
Another asset management firm, VanEck, also confirmed the upcoming launch of its VanEck Ethereum Strategy ETF (EFUT). The fund will invest in standardized, cash-settled ETH futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission (CFTC).
While the exact listing date was not disclosed, shares of the actively managed fund will trade on the Chicago Board Options Exchange (CBOE). Ethereum’s price movement in September has been characterized by seller congestion between $1,650 and $1,710.
However, the recent rebound driven by futures ETFs has provided support above $1,600. A cup and handle pattern has formed since the beginning of September, indicating a potential breakout that could propel Ethereum to $1,785. To confirm this pattern, bulls need to overcome the resistance at $1,670. The Moving Average Convergence Divergence (MACD) indicator suggests a bullish outlook, favoring further upward movement.