Ethereum has always played second fiddle to Bitcoin, but if the stars align, it might just end up outshining the king of crypto.

It sounds difficult, but it’s not impossible. In fact, it might happen sooner than people think.

We've seen several incredible developments that hint at Ethereum's capability to pull a home run when you least expect it.

From being more accessible to institutions to new upgrades under the hood — this is the story of Ethereum's rebound.

TLDR 📃

• Insider report suggests that all 16 ETH ETFs applications will likely be approved together.
• The approval of ETH futures sets the stage for ETH spot ETFs, probably earlier than Bitcoin Spot ETFs.
• Testing on Ethereum’s Deneb upgrade receives all green lights; a date is expected very soon.
• There are some concerns; Vitalik Buterin moves $1 million to Coinbase, indicating a sell move.

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The audio version of this Ethereum digest is available here.👆

Disclaimer: Not financial or investment advice. Any capital-related decisions you make are your full responsibility.

Get ready for 16 ETH ETFs and a wave of institutional funds

Ethereum is following in the trail blazed by Bitcoin, but it is moving much faster than the crypto king. An insider report indicates a very strong likelihood that a) ETH futures ETFs will be approved soon and b) they’ll all be approved simultaneously. That’s 16 ETFs set to hit the market all at once; this is much of a heads-up as we’re likely to get.

Bitcoin’s futures ETFs have been around since 2021 when the king was 13 years old. Their ETH counterparts are set to go live, with ETH being only eight years old in comparison. Of course, futures ETFs are easier to get approval for, but once the watershed’s broken, spot ETFs become within easier reach. 

So, brace up for an explosion in ETH Spot ETFs. 

ETFs make it easier for institutions to participate in the Ethereum ecosystem. While this is a great development on the economic front, something bigger is brewing on the technical front. 👇

All green on Deneb upgrade testing

More good news is on Ethereum’s horizon, this time on the technical side. 

Development on the Deneb upgrade has been sailing smoothly, with testing on the upgrades, including receiving all green lights. Ethereum devs got together to discuss progress last week and expect to announce a date for the upgrade very soon.

As a refresher, the Deneb upgrade is set to significantly improve user experience on Ethereum by suppressing the one thing we all hate most: gas fees. Rollups (L2s) and their gas fees are separated from the gas fees users pay directly on L1.

This means that when activity on L1 increases, gas fees on L2s remain unaffected by the surge in activity, and vice versa. 

They’re completely separate. For more details on what’s coming in Deneb, check out this Cryptonary report.

So, Ethereum is set to get a fresh wave of institutional participation, and the chain is getting massive upgrades. Yet, there are lingering concerns about ETH’s fundamentals. 👇

Whales are selling ETH, but is that a problem?

ETH emerged strong from BTC’s shadow in the mini-crash last week, experiencing a smaller dip and a stronger recovery. It wasn’t all roses, though, especially if you’re the single trader that lost $55 million thanks to leverage. We dove deep into the risks with leverage in our latest report; check it out here.

On the flip side, one ETH whale sold $40 million in ETH mere days before the crash. Perhaps they saw the highly over-leveraged market and decided to avoid the fallout. Whatever they saw, they handled the market with remarkable precision.

We haven’t seen any large whale sales since the mini-crash, except Vitalik Buterin moving $1 million to Coinbase, indicating he’s likely to sell. However, this is not a top signal! The top signal would be the Ethereum Foundation making a large sale. 

In this case, it appears that Vitalik is preparing to make a charitable donation, as he often does. This generosity showcases another advantage Ethereum has: focusing on social impact and increasing accessibility for those worldwide. Vitalik has sponsored programs to help many in Africa, Southeast Asia, and South America, helping them take their first steps on-chain.

This helps human lives and has significant upside potential for Ethereum’s future performance. The economies in those regions are expected to experience the most rapid growth in the coming decades. ETH is positioned as a pillar of the digital economy in many of those countries.

Now, let’s talk prices. 👇

Price analysis 📊

There have been two important changes for ETH last week. For starters, we lost $1,740 as support after the large BTC liquidation six days ago. As a result, ETH also broke structure by marking a new low under the one from June.

Simply put, ETH is now trading in a bearish market structure on the weekly timeframe, with its sights set on $1,420. That's, of course, considering $1,740 isn't reclaimed as support.

But what about now? What's ETH's next endeavour?

The asset has a bit more downside left in the tank, potentially even down to the low we registered a few days ago. From there, we're looking at a retest of $1,740, which will be the ultimate indication of whether we'll keep going down or not. 

If $1,740 cannot be reclaimed, we'd be looking at a rejection which can bring more downside to ETH's price. The market conditions have changed again, and the clearest thing we can deduce from that is that boredom will take over in the coming weeks/months.

Cryptonary’s take 🧠

ETH withstood the crash last week better than any second-gen cryptocurrency, all thanks to many of the positive catalysts on the horizon. There’s more good news in the short term for Ethereum. 

Right now, ETH is trading at a discount like most other tokens, but when those ETF approvals hit, the discounted price will be a long-gone memory. Therefore, we think the risk-reward ratio for accumulating ETH at the current price couldn’t be any sweeter.

This might be the last chance to buy ETH at current levels. The next surge might leave many biting the dust, but here at Cryptonary, we’ll be ready.

As always, thanks for reading! 🙏

Cryptonary, out!