Avalanche (AVAX) price hovered near a key level on Thursday as the market reacted to the launch of a new exchange-traded fund (ETF) linked to the token.
Over the past month, AVAX has risen by about 8.8% as buyers attempt to push prices higher again. Even so, the token is still down about 47% from a year ago after a prolonged slump in the cryptocurrency market.
When these two numbers fall at the same time, it usually means that some traders are closing their positions while others are waiting for the next move.
Grayscale Avalanche ETF Begins Trading
The market is reacting to a new product from Grayscale Investments. The company’s Grayscale Avalanche Staking ETF began trading on Nasdaq on March 12 under the ticker GAVA.
The fund initially appeared in August 2024 as the Grayscale Avalanche Trust. At the time, it was only available to qualified investors through private placements. After submitting an application to U.S. regulators in 2025, the product was converted into a publicly traded exchange-traded product.
The ETF began trading with an initial net asset value of $23.33 per share and approximately $5.55 million in assets under management. It tracks the price of AVAX and takes into account staking rewards earned from the network. In 2025, the average staking return on Avalanche was about 7%, which is now reflected in the fund's structure.
AVAX Price Technical Analysis
On the charts, AVAX is slowly moving towards the $10 level, which acted as strong resistance in previous rallies. Currently, the price is near the upper Bollinger Band near $9.8 to $10, and traders are watching to see if it can break through this area.
Volatility has been contracting over the past few days as the Bollinger Bands have gotten closer together. This type of setup often appears before a larger move after the price eventually breaks out of the range.
AVAX has also rebounded above its 20-day moving average near $9.1 to $9.2. This level has held steady during recent pullbacks, with buyers stepping in each time the price approaches it.
Momentum has also improved. Slightly above the neutral zone, the relative strength index is currently at 53. Since the indicator has not yet entered overbought territory, the price could still move if buying pressure persists.
Support is near $9.10 to $9.20, while a deeper pullback could test the $8.40 to $8.50 area. Currently, the main level traders are watching remains $10. A daily close significantly above that line would be the first strong signal that AVAX may be turning upward after months of declines.