Ethereum has experienced a remarkable resurgence amidst a challenging period for the cryptocurrency market. This rebound comes as a result of the introduction of Ethereum-focused exchange-traded funds (ETFs) in Hong Kong. Following a dip below the crucial $3,000 mark, Ethereum’s price trajectory mirrored that of Bitcoin’s downward trend.
The launch of Ethereum ETFs in Hong Kong was met with significant investor interest, as evidenced by the impressive inflow of $292 million on the first day. These newly established ETFs have quickly become a focal point for cryptocurrency enthusiasts in the region, with a recorded $8.5 million on their debut.
While U.S.-based Bitcoin ETFs continue to dominate the market, experts remain cautiously optimistic about the future of Ethereum ETFs in Hong Kong. The trading volume of HK$87.58 million ($12 million) on the first day signals a growing interest in digital assets in Asia.
However, despite Ethereum’s resurgence and rebound from the $2,820 zone, challenges persist as the digital currency faces resistance near the 100-hourly simple moving average. Currently trading at $2,988, Ethereum is expected to encounter immediate hurdles at the $3,050 level, with the $3,150 threshold posing as a significant barrier.
If Ethereum fails to breach the $3,050 resistance level, it could lead to another downward spiral, with initial support resting at the $2,780 mark. A breach below this level may potentially trigger a bearish trend towards the $2,600 and $2,450 zones.