In the dynamic landscape of the cryptocurrency market, Ethereum (ETH) stands at a pivotal moment, with prominent crypto analyst Michaël van de Poppe forecasting a potential bullish breakout. In a recent tweet, van de Poppe shared his insights, suggesting that Ethereum was approaching the low of 2022 and poised to absorb liquidity at that level.
The analyst conveyed the belief that the approval of a spot ETF for Bitcoin (BTC) could trigger a liquidation event on the ETH/BTC trading pair chart. Following this, van de Poppe anticipated a rotation of funds into Ethereum, accompanied by a bullish weekly divergence.
As of the latest data, Ethereum is valued at $2,294, reflecting a notable 3.04% increase in the past 24 hours. Trading volume during this period has surged by 36.14%, reaching $12.48 billion. Subsequent to this modest rally, ETH has witnessed $21.60 million in short liquidations and $11.79 million in long liquidations, according to CoinGlass.
Van de Poppe’s analysis centers on the potential approval of a Bitcoin spot ETF by the U.S. Securities and Exchange Commission (SEC). Market anticipation is high, with financial giant BlackRock leading the charge alongside Grayscale Investments, Valkyrie, and ARK 21Shares, all submitting updated 19b-4 filings for their proposed spot Bitcoin ETFs.
The focus is particularly on BlackRock, which has expressed confidence in SEC approval, with expectations of a decision as early as this Wednesday. A positive outcome could trigger a ripple effect in the broader cryptocurrency market, not only affecting Bitcoin but potentially leading to a shift of funds into Ethereum.
Van de Poppe’s prediction relies on the notion that the approval of a Bitcoin spot ETF may instigate a significant uptrend for Ethereum. Traders and investors closely monitor 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.
