Ethereum has achieved a breakthrough as analysts signal an upward trend.
Ethereum (ETH) is currently at a crossroads that could define its trajectory in the coming weeks. Michaël van de Poppe, a renowned cryptocurrency analyst, said: shared This is a noticeably optimistic view that highlights Ethereum’s approach to 2022 lows as a potential springboard for a breakout.
In his analysis, Van de Poppe emphasized the importance of Ethereum’s current positioning, suggesting that its proximity to last year’s lows could be a catalyst to soak up liquidity and spark a bullish trend.
Analyst predicts Ethereum strength amid market movements
Van de Poppe’s forecast will depend on broader market conditions, particularly the potential approval of a U.S. spot Bitcoin exchange-traded fund (ETF). If this approval materializes, he expects it to have a significant impact on the ETH/BTC trading pair, potentially leading to a liquidation candle, i.e. a sharp price movement.
After that, Van de Poppe predicts there will be a significant change in market dynamics as funds circulate into Ethereum. He believes this move will be accompanied by a “bullish weekly divergence” that will put Ethereum on an upward trajectory.
#Ethereum It is likely that we will approach the 2022 low and secure liquidity there.
When ETF approval is received #Bitcoin When that happens, there will be a liquidation candle in ETH/BTC that will then cycle into Ethereum and lead to a strong weekly gain. pic.twitter.com/kGq91S7kq9
— Michael van de Poppe (@CryptoMichNL) January 9, 2024
Meanwhile, Ethereum appears to be struggling to keep up with Bitcoin’s price performance. It recently surpassed $2,300, reflecting Bitcoin surpassing $47,000, its highest since April 2022.
However, Ethereum has seen a slight retracement and is currently trading at around $2,249. This slight decline comes during a week in which assets fell 5.8%, contrasting with a significant surge in trading volume from $13 billion last Tuesday to more than $23 billion today.
Potential Spot Bitcoin ETF Surges with Approval
An important factor in Van de Poppe’s analysis is the potential approval of a spot Bitcoin ETF in the United States. The market is in crisis, with major players like BlackRock leading the spot ETF race along with other players like Grayscale Investments, Valkyrie, and ARK 21Shares.
The companies recently filed an updated 19b-4 filing for their proposed Bitcoin ETF, and market sentiment is leaning heavily toward a positive outcome.
BlackRock resubmitted its S-1 based on the last comments given yesterday. At first glance, it’s hard to tell what’s changed, but the fact of the matter is that the unprecedented 24-hour turnaround time for bt filings, comments, and refiling tells us that all parties have a goal in mind to get this show on the road immediately. pic.twitter.com/61cPtGJ4Oy
— Eric Balchunas (@EricBalchunas) January 9, 2024
BlackRock, in particular, has generated significant optimism in the spot Bitcoin ETF race. With an approval decision expected by tomorrow, January 10, these developments could strengthen Bitcoin and boost the flow of funds to Ethereum.
Van de Poppe is not alone in his bullish stance on Ethereum. Crypto Tony, another prominent cryptocurrency analyst, shares a similar outlook. Tony assumes that if Ethereum holds above the key level of $2,130, the path to a bullish phase could begin.
With Ethereum currently trading above this critical point, stability above this level is seen as a sign of market strength and potentially paves the way for future gains. Moreover, as Crypto Tony highlighted, a push towards $2,500 and above could significantly strengthen Ethereum’s bullish momentum.
The ETH range is simple. If we stay above $2,130 we are bullish.. If we get back to the highs of $2,500 we are really bullish. pic.twitter.com/YKOph2YbRY
— Crypto Tony (@CryptoTony__) January 8, 2024
Featured image by Unsplash, chart by TradingView
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