Key Points
- Ethereum (ETH) price dropped by 3.2% after the launch of the first-ever crypto spot exchange-traded funds (ETFs) in Hong Kong.
- The derivatives market has shown a bearish trend towards Ethereum for the past 2-3 days.
Ethereum (ETH) experienced a 3.2% decrease following the launch of the first-ever crypto spot exchange-traded funds (ETFs) in Hong Kong.
The world’s second-largest cryptocurrency had been on a downward trend since the ETFs started trading on the Hong Kong Stock Exchange (HKEX).
Ethereum’s Price Fluctuation
Before the ETFs began trading, Ethereum rose to $3,250. However, strong resistance pushed the digital currency down to $3,020, marking a 3.2% drop within 24 hours.
Ali Martinez, a renowned technical analyst and trader, had highlighted the importance of $3,200 as a critical resistance level for Ethereum.
Approximately 2.43 million addresses had bought 5.14 million ETH at this level, making it crucial for a sustained rally.
Impact of Hong Kong ETFs
Three Ether ETFs, as well as three Bitcoin (BTC) spot ETFs, made their debut in Hong Kong, a city aiming to establish itself as the next cryptocurrency hub.
However, all three ETFs tied to Ethereum closed lower as trading volumes didn’t pick up, which may have negatively influenced sentiment towards the cryptocurrency.
The derivatives market also felt the impact of Ethereum’s dip in the spot market. The Open Interest (OI) in Ethereum futures dropped by 4.5% within the last 24 hours.
The derivatives market seemed to have anticipated a poor opening day for the Hong Kong Ether ETFs. The number of traders betting against Ethereum has been increasing over the past few days.
At the time of writing, nearly 53% of market participants were bearish on Ethereum.
