Renowned analyst Michaël van de Poppe has expressed his belief that the approval of a spot ETF for Bitcoin (BTC) could have significant implications for the Ethereum (ETH) market. Van de Poppe predicts that such approval could lead to a liquidation candle on the ETH/BTC trading chart, followed by a rotation of funds into Ethereum and a bullish weekly divergence.
Recent data shows that Ethereum is currently valued at $2,294, representing a notable 3.04% increase in the past 24 hours. The trading volume during this period has also seen a substantial surge, rising by 36.14% to reach $12.48 billion. As a result of this modest rally, ETH has witnessed $21.60 million in short liquidations and $11.79 million in long liquidations, as reported by CoinGlass.
Market sentiment is growing as BlackRock expresses confidence in the approval of a spot Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC), with expectations suggesting a potential approval as early as this Wednesday. A positive outcome could have a ripple effect on the broader cryptocurrency market, not only impacting Bitcoin but also potentially leading to a rotation of funds into Ethereum.
Van de Poppe’s prediction is based on the idea that the approval of a Bitcoin spot ETF could trigger a significant 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 finds itself at this critical juncture, the market eagerly awaits further clarity from regulatory bodies and key players in the cryptocurrency space.
Please note that this article was originally published on U.Today.