In the dynamic landscape of the cryptocurrency market, Ethereum (ETH) is currently positioned at a pivotal moment, as highlighted by renowned crypto analyst Michaël van de Poppe. In a recent tweet, van de Poppe shared insights suggesting that Ethereum is approaching its 2022 low and is likely to absorb liquidity at this critical level.
The analyst expressed the belief that a potential approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) could trigger a liquidation candle on the ETH/BTC trading pair chart. Following this, van de Poppe foresees a rotation of funds into Ethereum, accompanied by a bullish weekly divergence.
As of the latest data, Ethereum is valued at $2,294, showcasing a significant 3.04% increase in the past 24 hours. The trading volume during this period has surged by 36.14%, reaching $12.48 billion. Notably, ETH has witnessed $21.60 million in short liquidations and $11.79 million in long liquidations, as reported by CoinGlass.
The crux of van de Poppe’s analysis centers around the potential approval of a Bitcoin spot ETF by the SEC, a development eagerly anticipated by the cryptocurrency market. Leading the charge is financial giant BlackRock, which, along with other prominent firms like Grayscale Investments, Valkyrie, and ARK 21Shares, has recently submitted updated filings for their proposed spot Bitcoin ETFs under 19b-4. Market sentiment is building as BlackRock expresses confidence in the SEC’s approval, with expectations of a decision as early as this Wednesday.
Should the SEC approve the Bitcoin spot ETF, van de Poppe predicts a ripple effect in the broader cryptocurrency market, not only impacting Bitcoin but potentially leading to a rotation of funds into 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.
