Ethereum (ETH), the top smart contract platform, has been significantly affected by Bitcoin’s (BTC) decline. The potential approval of a spot ETF in Ethereum had led to a price increase.
While a similar rise was expected in Ethereum, as seen with Bitcoin recently due to the spot ETF effect, what is the current situation with ETH now?
Ethereum’s Market Reaction to Spot ETF Approval
In recent months, there was curiosity about whether the approved spot ETF applications in Bitcoin would create a similar wave of increase in Ethereum. However, Ethereum is currently trading approximately $700 lower than its all-time high of $4,091.
Addressing this situation, MN Capital’s founder Michael van de Poppe expressed his confidence in the ETH ecosystem and noted that it has a very important support level. Van de Poppe commented on the recent drop in Ethereum prices a few days after the spot Ethereum ETFs were approved by the United States Securities and Exchange Commission (SEC).
ETH fell by 13% to $3,426, and the analyst suggested that as the momentum towards listing the Ethereum ETF starts to emerge, the upward trend will gradually increase.
Ethereum’s Potential for Significant Growth
Data from the cryptocurrency analytics company IntoTheBlock shows that ETH is at a support level below $3,400. Additionally, the cryptocurrency analyst emphasized that, based on the price movement in the 12-day timeframe, Ethereum recently produced a candlestick above its annual highs by bouncing off this support level.
According to the analyst, if Ethereum follows historical patterns, its price could surge dramatically, potentially reaching $20,000. This would position Ethereum as one of the most optimistic cryptocurrencies for investors.
“Ethereum is currently one of the most bullish altcoins. It is already trading above the previous year’s high.”
Ethereum is impacted by Bitcoin’s decline, but spot ETF approval could boost Ethereum’s price. Analysts see potential for a significant upward trend.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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