Ethereum Could Rise If It Clears $2,707 Resistance Amid SEC Delay On BlackRock’s ETH Options ETF

• SEC Delays Decision on BlackRock’s Application to Trade Options on Ethereum Trust.
• Ethereum exchanges have added over 100,000 ETH to their balance in the last 24 hours.
• Ethereum could maintain bullish momentum if it breaks the key resistance at $2,707.

Ethereum (ETH) fell 0.5% on Tuesday after the Securities and Exchange Commission (SEC) delayed its decision on BlackRock’s application to list and trade options contracts on the iShares Ethereum Trust (ETHA).

Ethereum ETF options will not appear in the market anytime soon

The SEC has delayed its decision on BlackRock’s application to list and trade options on the iShares Ethereum ETF (ETHA). Many had anticipated the green light after the regulator approved their spot Bitcoin counterparts last week. However, the SEC disappointed investors with the move to delay its decision.

Following that decision, Ethereum ETFs saw a net outflow of $79.3 million on Monday – the largest since late July – after Grayscale’s ETHE saw an exodus of $80.6 million . The net outflows indicate that ETH has yet to sustain high institutional appeal from traditional US investors.

Meanwhile, ETH may see short selling pressure as its exchange reserve has started to grow. The reserve has added more than 100,000 ETH in the past 24 hours, indicating potential future selling pressure, according to CryptoQuants data.

A rising trade reserve signals high selling potential and vice versa for a low reserve.

ETH exchange reserve

Ethereum needs to break above $2,707 to support the bullish view

Ethereum is trading around $2,660 on Tuesday, down 0.5% on the day. Over the past 24 hours, ETH has supported over $19.67 million in liquidations, with long and short liquidations accounting for $13.88 million and $5.79 million, respectively.

On the 4-hour chart, ETH is trading within the key rectangle after rebounding from the $2,595 support level. If this support holds, ETH could rally again to retake the $2,817 level, which has been a major support level for over four months. But it needs to break a key resistance around $2,707 – where it saw a rejection on Monday – to confirm the bullish move.

ETH/USDT 4 Hour Chart

QCP Capital analysts also noted that options data points to a potential bullish move amid rising market volatility. “The front-end decline for ETH has moved from put to call, while implied ETH volume is trading 9% higher than BTC, suggesting both bullish sentiment and higher expected volatility,” the analysts noted.

The Relative Strength Index (RSI) and Stochastic Oscillator momentum indicators are above their neutral levels on the 4-hour chart, signaling dominant bullish pressure.

A daily candlestick close below $2,595 could trigger a bearish view or lead to sustained consolidation.

In the short term, ETH could rise to $2,671 to liquidate $51.73M worth of positions.