Ethereum could see a brief rally despite Michael Saylor’s jab at ETH ETFs

Ethereum (ETH) hints at a weekend rally on Friday following its recent price movement. However, MicroStrategy Executive Chairman Michael Saylor attempted to spoil the fun after calling ETH a security and predicting spot ETH ETFs would be rejected by the Securities & Exchange Commission (SEC).

Read more: Ethereum to break out of bearish move, ETH ETFs unlikely in 2024

Daily digest market movers: Michael Saylor, Hong Kong ETFs, short liquidations

Ethereum has several factors layered into its potential rally. Here are key market movers for the number one Layer 1 blockchain:

• MicroStrategy founder Michael Saylor said in a recent keynote speech on Friday that spot Ethereum ETFs won’t be approved, alleging that the second largest digital asset is deemed a “crypto asset security and not a commodity.”

  He said that Ethereum, Solana, BNB, XRP, ADA and several other crypto assets are unregistered securities and would never be wrapped by a spot ETF. “None of them would be accepted by Wall Street; none of them would be accepted by mainstream institutional investors,” said Saylor.

  Saylor’s comment follows doubts surrounding the SEC approving a spot Ethereum ETF in May. Several institutions, including BlackRock, ARK Invest, Grayscale, Fidelity and VanEck, have filed applications for a spot ETH ETF.

  However, with recent regulatory actions targeted at Ethereum-related firms, many expect the SEC to deny these applications. Bloomberg analyst James Seyffart had earlier mentioned in an interview with Altcoin Daily that spot ETH ETFs are unlikely to happen in 2024.

  Several crypto community members took to the C platform to express their thoughts on Saylor’s comment, with some disagreeing with the MicroStrategy Chairman. One user commented, “I would absolutely bet @saylor will end up being wrong about this one.”

Also read: Ethereum attempts comeback after Fed decision not to tamper with rates

• As of the Asia market close on May 3, Hong Kong Ethereum ETFs had a total trading volume of HK$5.5 million—about $715,000. This shows that the products have yet to attract investors and may not likely have much of an effect on Ethereum’s price at this time.
• Following ETH’s slight recovery, short traders have begun to see higher liquidations than long investors in the past 24 hours. Total Ethereum short liquidations sit at $21.7 million, while long liquidations are around $8.46 million, according to data from Coinglass. This indicates the market is on the verge of turning bullish as recent options data also seem bullish, according to data from Greekslive.

Technical analysis: Ethereum could see a weekend rally

Ethereum may be on the verge of a bullish move following its recent price movement. ETH broke the $3,029 key level on Friday and is looking set to tackle the resistance of $3,103 from April 26.

Read more: Ethereum dips below key level as Hong Kong ETFs underperform

A successful move above this level may see ETH covering a liquidity void on April 30 and possibly entering a sideways movement. ETH may not see any bearish turn in the short term, but a key macro event could invalidate this thesis.

ETH/USDT 4-hour chart

As long liquidations trail shorts on Friday, ETH could see a considerable percentage of gains over the weekend. Bitcoin’s price movement will likely have a significant effect on how this analysis plays out.