Ethereum Price Prediction as Grayscale Files For New Ether Futures ETF – Here’s Where ETH is Headed Next
Crypto asset management giant Grayscale just filed paperwork with the US Securities and Exchange Commission (SEC) to create a new Ether (ETH) Futures Exchange Traded Fund (ETF), as per a report by the Wall Street Journal.
Grayscale filed for the ETF under the Securities Act of 1933, having also previously filed for an Ether Futures ETF under the Investment Company Act of 1940.
While comparable Bitcoin Futures ETF have been approved by the SEC under both acts, most ETFs are filed under the 1940 act.
Reports in the crypto press back in late August suggested there is a strong possibility that the SEC will approve a number of Ether Futures ETFs as soon as October.
That news made the price of Ether surge at the time amid front-running from traders, because a wider availability of Ether Futures ETFs could indirectly increase demand for the cryptocurrency, assuming institutional investors start buying up Ether Futures ETFs once they go live.
Ether was last changing hands around $1,640, just to the north of its 21DMA.
The fact that Ether looks set to close above its 21DMA following a fairly convincing break above the level in the past two days is a positive for the cryptocurrency’s near-term price outlook.
The 21DMA had previously been acting as an area of strong resistance for the past more than two-months.
A break above this level sets the stage for a potential rally to the 50DMA just above $1,700 and even the late August highs around $1,740.
Assuming ETH can close above its 21DMA, near-term price predictions are likely to turn modestly more bullish.
But traders should keep an eye on upcoming macro risk events, such as Wednesday’s rate decision and monetary policy announcement from the US Federal Reserve.
The central bank isn’t expected
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