Disappointing news for Ethereum investors as EYTH has climbed by less than 3% and was rejected around $2720 even after major news about a $120 Million investment by the Ethereum Foundation as well as a proposal for Ethereum ETF staking by 21Shares Fund.
Yesterday, Feb. 13, the Ethereum Foundation injected nearly $120 Million worth of Ether into the DeFi platforms operating in the Ethereum Ecosystem.
The largest transfer of 30,000 ETH ($81.6 Million) was made to Aave, 10,000 ETH ($26 Million) was moved to Spark – which is part of MakerDAO, while 4200 ETH ($11.2 Million) was made to the lending platform Compound.
In what most ETH hodlers hope would be the second reversal-shifting news of the day, the Chicago Board Options Exchange (Cboe) made a 19-4b filing with the SEC proposing an amendment to permit staking for Ethereum ETF.
The filing was made on behalf of 21Shares Funds and would affect the 21Shares Core Ethereum ETF.
The market, however, reacted underwhelmingly to this news, with Ether prices gaining less than 2% in the 24 following both reports. At the time of writing, ETH traded around $2,690, with its listless uptrend from the lows of $2,615, which had been strongly rejected at $2,720.
2 Reasons Behind ETH’s Disappointing Price Action
Two key factors attributed to Ethereum’s lacklustre price action. First would be the wait-and-watch mode that has gripped the crypto markets.
This has affected all the top coins, including Bitcoin which has been hovering between $91000 and $100,000 for the past three weeks.
Secondly, the market’s bearish sentiment towards Ethereum is currently at its peak, and there isn’t enough bullish momentum to counter it.
This may be evidenced by the fact that ETH is currently trading at three-month low price levels. Further, the number of short calls for ETH that are currently open is at an all-time high.
When Will ETH Reach $4000?
Ethereum is currently trading levels below the critical resistance levels of $2,800 and $3,300. The majority of Ethereum forecasts are massively bullish about Ether’s future price action and expect it to blow above $4,000 eventually.
To get there, though, it needs enough bullish pressure to catapult it above $3,300 and enough market pressure to push it towards $4,000.
