Ethereum ETFs Launch About To Kickstart The Altseason? Analysts Weigh In
24 July 2024 - 6:00PM
NEWSBTC
The long-awaited Ethereum Exchange-Traded Funds (ETFs) are finally
live, registering over $100 million in volume in the first 15
minutes. Investors expect to see the launch’s impact on the crypto
market, while some market watchers believe ETH ETF’s performance
will kickstart the Altcoin season. Related Reading: PolitiFi
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Following Biden Dropout Ethereum Spot ETFs Are Officially Live On
Monday, the US Securities and Exchange Commission (SEC) gave the
final nod to Ethereum spot ETFs, setting the launch date for
Tuesday, July 23. After the approval, investors raised the alarm
following some online reports. Per Whale Alert, Grayscale has
transferred $1 billion in ETH to Coinbase Institutional. This led
many investors to fear that the digital asset manager’s transaction
would add selling pressure to the asset and affect its price
performance ahead of the launch. However, ETF expert Eric Balchunas
offered some relief to investors after pointing out that Grayscale
didn’t move the tokens to dump them. The firm transferred the
292,262 Ethereum “from $ETHE to its mini-me = $ETH.” Balchunas
considers it “a new variable in this race that we didn’t have in
the btc race.” The initial numbers have been released now that the
highly anticipated products are live. Balchunas shared on X that
the Ethereum ETFs saw $112 million in the first 15 minutes of
trading. This number increased to $361 million total after 90
minutes. The Bloomberg expert praised the volume, calling it a
“solid showing” regardless of being 20-25% of Bitcoin (BTC) ETFs
numbers. Despite the healthy performance, ETH remains hovering
between the $3,440 and $3,540 price range. Are ETH And Altcoins
About To Take Off? Ahead of the launch, some market watchers
anticipated that the ETFs’ performance could kickstart an upswing
for Altcoins. According to several analysts, the Altcoins chart
shows similarities to the 2016-2017 performance, suggesting that
the Altseason is “brewing.” To Crypto Jelle, “Altcoins are still
following the traditional bull market preparation playbook.” Per
the macro chart, altcoins broke from the accumulation zone and
chopped around key support levels during previous cycles. The
“pre-bull market consolidation” was followed by a take-off that
propelled cryptocurrency prices to new highs. Jelle pointed out
altcoins are currently in the consolidation zone, similar to past
cycles. He also suggested a new take-off “shouldn’t take long”
after Ethereum ETFs’ launch. Crypto trader MikyBull also
highlighted the similarities between the previous cycles, which
suggest that a “huge Altseason is brewing.” To the trader, the
recent “fake out” made investors believe that this cycle’s
Altseason “has been written off,” but he expects altcoins to “pull
a 2017 kind of explosive” rally that follows the same PA path. The
trader considers Ethereum’s price might be positively affected by
ETH spot ETFs. This performance will be the primary driver for the
“huge rally in the coming months.” Additionally, he set a band
price target of $10,000 for ETH. Related Reading: Ethereum Price
Stays Flat Despite Today’s ETF Debut: QCP Explains Why Other market
watchers suggested that investors must remain serene if a price
drop occurs. Pseudonym analyst and trader Moustache called for
patience as “it’s only a matter of time.” “Ethereum chart looks
like it did in the last cycle, just before the Altcoin bull market
started,” he added. As of this writing, the second-largest
cryptocurrency by market capitalization is trading at $3,419, a
1.1% decline in the last 24 hours. Featured Image from
Unsplash.com, Chart from TradingView.com
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