On January 10, 2024, the SEC approved all Bitcoin Spot ETFs. The first regulated spot, Bitcoin Exchange-traded-funds (ETF), was approved by the SEC a few hours after its fake release, causing $300 Million in Bitcoin liquidation within a few hours.
ETF Approval, Opens ETH Gateways to $2800!
On top of this huge development, Ethereum (ETH) is currently exhibiting notable strength, surpassing Bitcoin’s performance with an 8% surge, driven by the mounting anticipation surrounding the potential approval of spot Bitcoin Exchange Traded Funds (ETFs).
Now that the outcome of Bitcoin ETF approvals is out, there is a growing expectation from analysts that Ethereum might experience a similar trend. Numerous institutions have already submitted applications for spot Ethereum ETFs, contributing to a supply shock as funds pour into the Ethereum market in anticipation of a potential ETF launch.
ETH’s price action shows a bullish flag pattern due to consolidation between $2200 support and $2400 resistance. Buyer enthusiasm rises as Ethereum breaks out, suggesting a bullish 2024.
So, what’s the deal? Is this correction a dip you should buy? Will Ethereum go up?
Technical, On-Chain Metrics Say’s Possible but with a Twist…
Technically, Ethereum’s price is navigating within an ascending parallel channel, indicating a bullish stance and the possibility of reclaiming the $2,457 range high. This upward momentum could propel ETH towards the $2,800 level, marking a substantial 15% increase from its current levels. In an exceptionally bullish scenario, Ethereum might even reach the $30,000 psychological level, indicating a 25% surge.
Supporting this optimistic outlook are various on-chain metrics. Santiment’s daily active addresses metric reveals a consistent increase in crowd interaction with Ethereum, reflected in the rise of daily active addresses from 387,000 to 413,000 in under a month—a 6.7% growth. Additionally, whale transactions involving transfers of $100,000 and above have experienced a notable uptick, underlining heightened investor interest.
However, it’s crucial to acknowledge the potential for correction, especially if bears take control. A downside correction could lead to ETH losing support at $2,388. In a more adverse scenario, a prolonged decline might push the proof-of-stake (PoS) token down to $2,135, signaling a potential shift in the prevailing bullish sentiment if a lower low is established. Overall, Ethereum’s current dynamics are intricately tied to the broader market sentiment and developments surrounding Bitcoin ETF approvals.
ETH Breakout Rally at $40 upcoming, If?
Ethereum Classic (ETC) has made a strong move above $25, signaling a bullish trend. Investors, buoyed by positive sentiment, are more open to risk, contributing to the overall rise in altcoins. If market conditions stay positive, ETC might surge past various resistance levels, reaching $40. However, a loss of momentum could see it revisiting the $25 mark. Keep an eye on ETC for potential excitement in the crypto market!
