25.10.2021

Grayscale Ethereum Trust Trading at a Premium

According to Grayscale, one share of their Ethereum trust is allocated 0.09276525 ETH. Doing the math, this corresponds to a value of $54 given Ethereum’s current price of $585.

This means the Grayscale Ethereum Trust’s current share price is 2.7x more than the value of 0.09276525 ETH allocated per share and could very much be the first indicator of a possible correction for ETHE.

Conversely, it could indicate that the real Ethereum is very much undervalued and the ETHE premium rate is foreshadowing a rally for Ethereum (ETH) above its all-time high of $1,400. However, this is pure speculation and should not be considered investment advice.

Quick take:

  • The Grayscale Ethereum Trust (ETHE) has had a fruitful Q4 by gaining 274%
  • October 1st found ETHE trading at $39
  • The share price is now at $146 with a possible correction in the days to follow
  • Grayscale continues to accumulate Ethereum with approximately $1.73 billion under management

The share price of Grayscale’s Ethereum Trust (ETHE) has had a fruitful fourth quarter of 2020 by almost tripling in value since October 1st. At the latter date, the share price of the Grayscale Ethereum Trust (ETHE) was approximately $39. At the time of writing, the same ETHE is valued at $146 signifying a 274% increment in less than three months.

The chart below, courtesy of Tradingview, further demonstrates the impressive growth of the Grayscale Ethereum Trust’s share price.

What Next for the Share Price of the Grayscale Ethereum Trust?

The following can also be observed from the Grayscale Ethereum Trust (ETHE) chart above.

  • $39 was a local bottom for the Grayscale Ethereum Trust (ETHE) share price
  • The daily trade volume is very much in the green confirming bullishness
  • ETHE’s value is above the 50-day, 100-day and 200-day moving averages
  • A golden cross is about to form between the 50-day (white) and 200-day (green) moving averages
  • However, the daily MACD is overextended hinting at a correction or possible sideways
  • The daily MFI and RSI also confirm and overbought situation for the Grayscale Ethereum Trust
  • ETHE has the July 2020 peak value of $157 to contend with as its next substantial resistance level
  • Grayscale Continues to Accumulate Ethereum

Recently, Grayscale has been silently accumulating Ethereum. At the time of writing, assets under management in the Grayscale Ethereum Trust are at $1.73 Billon. This corresponds to approximately 2.94 million Ethereum (ETH) held by Grayscale. Chances are that Grayscale will continue purchasing Ethereum in a manner similar to how they have scooped up Bitcoin in the past one year.

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