Spot Ethereum ETFs have finally been approved in the United States, marking a major milestone for the cryptocurrency market. This is likely to increase institutional interest in Ethereum, the largest altcoin, and could also impact the market values of memecoins like PEPE.
Looking at Bitcoin’s experience can be instructive. After the approval of its Spot ETF, Bitcoin quickly reached a new all-time high. This surge not only boosted Bitcoin but also positively affected other cryptocurrencies, including altcoins and memecoins. We might see a similar effect with Ethereum ETFs.
PEPE Poised for Potential Surge with Spot Ethereum ETFs Approval
In just 30 days, Spot Bitcoin ETFs experienced daily net inflows of approximately $125 million. This robust inflow was a positive indicator for Bitcoin’s future performance, which saw substantial gains in the following months.
PEPE also benefited significantly from the approval of Spot Bitcoin ETFs, with its price surging by 86.56% within just a week. Given PEPE’s strong correlation with Ethereum, a similar reaction might be expected once Spot Ethereum ETFs begin trading.
Currently, PEPE is consolidating after breaking out from a bullish flag pattern on its charts. This phase often signals a potential continuation of bullish momentum. The $0.0000015 level has emerged as a strong support, with PEPE rejecting this level multiple times, suggesting a possible bullish rally ahead.
Source: PEPE/USD, TradingView
Additionally, PEPE has historically followed a pattern of seasonal consolidation followed by significant price rallies. With its recent breakout from a bullish flag, there’s potential for a notable price increase in the near future.
Market Indicators Suggest Potential Rally for PEPE with Spot Ethereum ETFs
Recent data from IntoTheBlock shows a notable drop in large transactions, decreasing from 179 to 129 over the past week. This decline, which represents a 27.93% drop in the last 24 hours, might signal upcoming significant price movements on the charts.
pepe number of large transactions. Source: IntoTheBlock
Coinglass liquidity level data also points to a balanced market, with bulls holding a slight advantage. This suggests that investors are anticipating a short-term increase in PEPE’s price, which supports the likelihood of a potential rally.
Huobi-PEPE_USDT-Liquidation-Heatmap24-hrs. Source: Coinglass
Overall, the current market dynamics appear favorable for PEPE and other memecoins closely correlated with Ethereum. As Spot Ethereum ETFs begin trading, these memecoins could experience a rally. However, the duration of this rally remains uncertain.
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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