NEW DELHI (CoinChapter.com) — Lido DAO (LDO) and Ethereum Classic (ETC) prices rocketed following news of asset management giant BlackRock taking steps to launch a spot Ethereum (ETH) exchange-traded fund (ETF).
Speculation of the new ETH-based investment vehicle began doing the rounds after the Delaware Division of Corporations (DoC) website showed an iShares Ethereum Trust registration on Nov. 9.
To recap, the Division of Corporations website had shown a similar registration for an iShares Bitcoin Trust a week before Blackrock filed for a spot Bitcoin ETF in June earlier this year.
As news of the listing on the Delaware DoC website started doing the rounds, ETH prices started rallying as traders went on a buying spree.
However, the rumors were later confirmed when Nasdaq filed the 19b-4 form with the US Securities and Exchange Commission on BlackRock’s behalf for a proposed ETF called the “iShares Ethereum Trust.”
The SEC has approved Bitcoin and Ether Futures ETFs, and rumors of the regulatory watchdog approving a spot BTC ETF soon are doing the rounds. Hence, the decision to file for a spot ETH ETF was logical, given that BlackRock has already filed for a spot Bitcoin ETF.
Bradley Duke, Chief Strategy Officer at ETC Group, shared similar views.
Blackrock’s application for an Ethereum Spot ETF further proves that the investment world is readying itself to embrace crypto assets. […] it makes sense that following any approval of a spot Bitcoin ETF by the SEC, approval of a spot Ethereum ETF would follow closely.
Duke told CoianChapter in a note
ETF Tide Proves Boon for Lido DAO (LDO) and Ethereum Classic (ETC)
Meanwhile, Ethereum staking platform Lido DAO (LDO) and Ethereum Classic (ETC), a hard fork of the Ethereum blockchain, enjoyed a massive price surge. Both the Ethereum-associated tokens rode the ETF news hype.
LDO price spiked nearly 32% from Nov. 9’s low of $1.9 to reach a daily high near $2.49 on Nov. 10, the token’s highest price level since May 2023. However, profit booking pared most of the gains on Nov. 10, evident from the long upper wick on the day’s candle.
If the selling pressure increases, the LDO price could drop to the immediate support near $2.17. A breakdown below the immediate support level could force bulls to defend the 20-day EMA (red wave) support near $1.93.
Conversely, if the rally continues, the LDO price might rally to the resistance near $2.56. Moreover, breaking and consolidating above the immediate resistance might help the Lido DAO token price target the resistance near $2.85 before correcting.
The RSI for LDO was overbought, clocking a reading of 74.6 on the daily charts.
For ETC, the price action was more or less similar, rising nearly 21% since Nov. 9 to form a multi-month high near $21.9 on Nov. 10. Like LDO, ETC prices also fell prey to profit booking, paring most of the day’s gains.
If the sell-off continues, the ETC price might be forced to test the support near $19.46. Breaching the immediate support level might see the ETC price drop to the 20-day EMA (red wave) support near $17.8.
On the other hand, if bulls continue the rally, the ETC price could rally to the resistance near $22.44. Moreover, breaking and consolidating above the immediate resistance might help the Ethereum Classic crypto token price target the resistance near $24.
The RSI for ETC remained overbought, clocking a score of 80.64 on the daily charts.
LDO Price Forms Bullish Pattern, ETC Price Paints Bearish Pattern
The Lido DAO token has formed a bullish technical pattern called the ‘Ascending Triangle.’
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Volume helps determine if a breakout is strong.
In an ideal world, buyers would enter the market as the trendlines close the gap, pushing prices above horizontal resistance with heavy volumes. Unfortunately, a low-volume breakout on the upside will likely fail, resulting in a pullback.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. As such, the LDO price could rally nearly 855% to reach the theoretical price target near $23.1 if the pattern pans out.
On the other hand, ETC price has formed the bearish brother of the Ascending Triangle pattern, called the ‘Descending Triangle.’
A descending trendline connecting swing highs and a horizontal trendline joining swing lows form the pattern. Moreover, the height of the triangle’s thickest section determines the price target in a descending triangle setup.
The pattern gave ETC prices a theoretical breakdown target of $2.18, a drop of nearly 90% from the current price levels.
