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In the ever-evolving landscape of the cryptocurrency market, Ethereum (ETH) finds itself at a critical juncture, with renowned crypto analyst Michaël van de Poppe predicting a potential bullish breakout. In a recent tweet, van de Poppe conveyed his insights, indicating that Ethereum was approaching the low of 2022 and was likely to absorb liquidity at that level.
He expressed the belief that in the event of a spot ETF approval for Bitcoin (BTC), there would potentially be a liquidation candle on the trading chart for the ETH/BTC trading pair. Following this, analyst van de Poppe foresaw a rotation of funds into Ethereum, accompanied by a bullish weekly divergence.
According to the most recent data, Ethereum is presently valued at $2,294, indicating a noteworthy 3.04% uptick in the past 24 hours. The trading volume within this period has experienced a substantial surge, escalating by 36.14% and peaking at $12.48 billion. In the aftermath of this modest rally, ETH has observed $21.60 million in short liquidations and $11.79 million in long liquidations, as reported by CoinGlass.
Spillover effect
The focal point of van de Poppe's analysis revolves around the potential approval of a Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC). The cryptocurrency market anticipates a breakthrough, with BlackRock, a financial behemoth, leading the charge. BlackRock, along with other prominent firms such as Grayscale Investments, Valkyrie and ARK 21Shares, has recently submitted updated 19b-4 filings for their proposed spot Bitcoin ETFs.
Market sentiment is building as BlackRock expresses confidence in the SEC's approval for its spot Bitcoin ETF, with expectations pointing toward a potential decision as early as this Wednesday. A positive outcome could trigger a ripple effect in the broader cryptocurrency market, impacting not only Bitcoin but also potentially leading to a rotation of funds into Ethereum.
Michaël Van de Poppe's prediction hinges on the notion that Bitcoin spot ETF approval may prompt a notable uptrend for Ethereum. Traders and investors are closely monitoring these developments, recognizing the interconnected nature of cryptocurrencies and the potential spillover effects of major regulatory decisions. As Ethereum stands at this critical juncture, the market awaits further clarity from regulatory bodies and key players in the cryptocurrency space.
Yuri Molchan
Vladislav Sopov
Dan Burgin
Alex Dovbnya