The price of Ethereum has risen for four days in a row and is now hovering around the crucial $2,000 support level as BlackRock launches its first ETF today, March 12.
Conclusion
- BlackRock today launches ETHB, its first Ethereum ETF.
- ETHB will have an expense ratio of 0.25%, which is a better option than ETHA.
- Ethereum formed a bearish flag pattern, indicating a pullback.
Ethereum (ETH), the second largest cryptocurrency, is trading at $2,056, which remains within the range of the last 30 days. This price is about 60% below the all-time high.
A major catalyst for the price of ETH is that BlackRock, the world’s largest asset manager, is launching its ETF today. This is a big milestone that will solve the main problem that existed in the existing funds.
Existing Ethereum ETFs, which have more than $11.85 billion in assets, do not offer premiums, making them ideal for most investors. In BlackRock’s case, ETHA ETF holders pay an annual fee of 0.25% and forgo monthly returns. The data shows that Ethereum has a gain of around 3%.
The new ETF will have the ticker ETHB and an annual fee of 0.25%. It is initially exempt from paying 0.12% for the first year or when it reaches $2.5 billion in assets.
Therefore, one possible scenario is that there is a rotation of ETHA and other Ethereum ETFs to ETHB. It can also lead to more inflows from investors who have not yet invested in these funds.
Ethereum price forecast
The daily chart shows that the price of ETH has fallen from the all-time high of $4,950 to the current $2,065. Since November of last year, when the death cross pattern formed, it has always been below the 50-day and 200-day moving averages.
Ethereum price has formed a horizontal channel with support and resistance levels at $1,843 and $2,193. It has remained in this channel since February 6 of this year.
This channel is formed after the coin drops sharply, which is part of the bear flag pattern. In most cases, this pattern often leads to a sharp bearish breakout.
Therefore, the coin is likely to experience a strong breakout in the near future. If this happens, the primary target will be the lower part of the channel at $1,843. A break below this price will lead to further declines, possibly to $1,500.
