- Renzo, the Ethereum restaking Protocol Renzo has taken a big hit since its restaked ETH did not maintain a ratio of 1:1 with ETH.
- BlackRock’s spot ETF application for ETH has been amended. The SEC delayed its decision regarding Franklin, Grayscale and BlackRock.
- Hong Kong spot ETFs for ETH will start trading April 30.
Ethereum The price of (ETH) fell briefly on Wednesday, despite the increased accumulation by whales. The Ethereum restaking Protocol Renzo resteaked ETH (ezETH), which was pegged at 1:1 with Ethereum, crashed from this level and there were increased activities around spot Ethereum ETFs.
Click here to read more Ethereum still hints at a rally after reduced long-liquidations
Weekly digest: Renzo’s crash, Whale buying, Ethereum spot ETF
After a series of key events, Ethereum saw a spike in activity on Wednesday. The top market moves for the leading altcoin are listed below:
- Renzo resteaked ETH crashed Wednesday following a shift downward from its 1:1 peg with ETH. Data from DEXscreener shows that ezETH dropped to $750 and its peg to ETH was reduced to 0.27. This crash began after a large amount of ezETH was dumped on DEXs following Renzo’s announcement of the distribution costs for its REZ native token airdrop. After the crash, Loopers – leverage traders who repeat a cycle of borrowing, buying and restaking their LRTs – saw $340 million in liquidations. According to Lookonchain, many ETH traders took advantage of the drop in price by buying ezETH, and then earning additional ETH when the token was restaked.
- Although the crash was not severe, investors should revisit the advice given by Coinbase and key members of the crypto community about the potential risks associated with restaking protocol and the impact they may have on the Ethereum ecosystem. A user on X highlighted the impact a more severe crash would have had on Ethereum’s value.
- According to Lookonchain, even before Renzo’s brief chaos moment, whales had been accumulating Ethereum in large quantities. The suspected Justin Sun wallet has continued to buy ETH, with a withdrawal of 15,389 worth $49.78m from Binance. Since April 8, the wallet purchased 147.442 ETH valued at $469.9 millions, with an average purchase price of $3,179.
Please read also: Ethereum is showing signs of potential growth as Justin Sun wallet purchases are suspected.
- The spot Ethereum ETF is also heating up. The Securities & Exchange Commission delayed its response to Franklin’s application for a spot ETH-ETF. It also postponed Grayscale’s request that it convert the Ethereum Trust into a spot ETH-ETF by 60 days. BlackRock has also shown that it does not intend to withdraw its spot ETF ETH by filing a Nasdaq Rule 571(D) Commodity Trust Shares amendment on Tuesday. BlackRock did not mention staking in its amendment. The SEC started asking public comment on BlackRock’s amendment to the spot ETF.
Investors pointed out BlackRock only has lost one time when it comes to applying for ETFs. BlackRock was criticized by an X-user who said, “If BlackRock thought that they would be rejected, they wouldn’t have applied.” “They’re not doing business with being refused.”
Nate Geraci of ETF Store commented.
The spot BTC ETF cycle is now complete.
Time for spot eth ETF.
Grayscale ETHE has a broken structure, and eth-based futures ETFs are suboptimal.
COIN & HOOD is a publicly traded exchange where you can purchase eth without paying any fees.
There is no reason why spot eth ETF should not exist.
— Nate Geraci (@NateGeraci) April 24, 2024
- Analysts have reduced their odds that the SEC will approve a spot Ethereum-based ETF by May. Things may however change as the market develops.
- Bloomberg analyst Eric Balchunas has confirmed that Hong Kong spot Bitcoin and Ether ETFs are set to begin trading April 30. The potential rally may gain momentum. Since the start of the week, ETH has been showing signs that a rally is coming.
Analysis: Ethereum must gain strength in order to surpass key levels
After briefly breaking through the $3,279 barrier of April 15, Ethereum experienced a pullback. This dip may be indicative of a larger market trend, as top cryptocurrencies such as Bitcoin, Solana and XRP all experienced a decrease.
This recent drop has cast a doubt over a possible rally, which ETH’s movement in price had hinted at. The price is also showing strong resistance between the range of $2,852 to $3,300.
Click here to read more Ethereum returns to consolidation after a brief dip. Buyback yields exceed those of S&P 500 major companies
Chart of ETH/USDT for 4 hours
A possible upswing could cause ETH to make a rapid run past $3,406 and confirm its rally. The largest altcoin will need to have increased trading volume as well as bullish strength in order to move above this range.
Bitcoin’s movement and the SEC’s announcement of a spot ETH-ETF will be crucial in determining ETH’s direction in the next few weeks.
Ethereum Development FAQs
The Ethereum community will now focus on the Sharding update, scheduled for later this year. This development is summarized by four words: “scalability via more efficient data storage.” It will expand the data available for storage or access. All services that run on the Ethereum blockchain are also going to enjoy lower transaction fees.
Forks are created when developers decide to upgrade a blockchain. This decision is made after developers have reached a consensus on a new software update. In the next part, one side will continue as it is while the other will add new features to the original ones. Hard forks diverge a side chain permanently from the original, while soft forks do the same thing, but only temporarily.
EIP-4844 proposes an upgrade for the Ethereum Network. This upgrade offers reduced gas costs, which can be a great offer considering that the transaction fees are so high. This has long been an issue for the Ethereum Network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. It also helps reduce transaction costs as it becomes more decentralized.
Gas tokens are a brand new and innovative Ethereum contract that allows users to tokenize their gas over the Ethereum network. Gas can be stored when the price is low and then used to power the system once the market shifts to the North. Gas tokens can be used to subsidise high gas prices in transactions. This allows investors to do anything from arbitrage decentralized exchanges or buy into Initial Coin Offerings (ICOs).
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