In May, Ethereum (ETH), a decentralized blockchain with smart contract functionality, became the second crypto entity after Bitcoin (BTC) to achieve a spot Exchange Traded Fund (ETF) approved by the United States Securities and Exchange Commission.
Consequently, the Ether-based coin enthusiasts and other market watchers have anticipated an exponential expansion in the token’s price trajectory – an event with massive potential to orchestrate altcoins’ bull season if it progresses without negative external influence like regulatory concerns.
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#Ethereum is yet to make a massive breakout! pic.twitter.com/RpvmUjr8fx
— Mister Crypto (@misterrcrypto) June 5, 2024
Amid the excitement about a potential altcoins market rally happening in this cycle, a renowned market analyst on X recently gave out a possible timeline to anticipate the bull run, citing Ethereum as a central focus.
Subsequently, this insight will delve deeply into this market expert’s analysis as we unravel significant findings that will help predict the crypto market’s future outlook.
This Support Level Will Be Crucial In Driving ETH’s Price Surge – Analyst
Taking to his verified X handle, McKenna, a renowned market watcher and analyst on X, has called the attention of his 88.8K followers to a support level that must hold before the Ethereum ETF launches.
According to the chart attached to McKenna’s post, the support level was at $3,489.53 with two extremes between $4,858.90 and $2,987.06, implying that Ethereum still boasts the propensity of declining further. On the other hand, $4,858.90 presents as the next possible ascent target.
For context, Ethereum spot ETF approval does not necessarily imply that the ETFs have started trading. Some pertinent procedures, particularly S-1 filing approval, must be completed before finalizing the processes.
In a nutshell, Ethereum can only benefit from the ETF trades by completing the above-highlighted procedures. Meanwhile, it is worth noting that the price surges that accompanied the ETH spot ETF approval in May stemmed mainly from a positive sentiment shift from the approval, not necessarily from the ETFs’ presence in the crypto market.
Implications Of Maintaining Support Amid ETH’s Big Money Flow Move
Per McKenna, Maintaining support at $3,489.53 remains highly significant because it will make Ethereum’s price ascent relatively easy compared to when it has fallen below $3,000.
In addition, sustaining the support at the specified mark will help ensure trust in the project, preventing rapid sell-offs, especially from retail investors, and placing the Ether-based token in a pole position for the big money flow expected to accompany Ethereum’s spot ETF trading.
When To Anticipate Ethereum’s Big Money Flow
Projecting when to expect Ethereum’s big money flow, McKenna noted that it is likely to happen either by this month’s end or probably in early July, adding that BlackRock has already resubmitted their S-1 filing and is currently anticipating SEC’s approval.
Concluding his analysis, the market expert stated, “You have weeks left until Institutional capital begins to pour into ETH,” spewing good tidings for Ethereum holders’ hoping to earn massively from the decentralized project.
If you are long biased this is the level you want to see hold going into the Ethereum ETF launches.
Possibility these ETFs begin trading towards the end of the month or early July. BlackRock already resubmitted their S-1 filing currently awaiting approval by SEC.
You literally… pic.twitter.com/yqPmGsnsld
— McKenna (@Crypto_McKenna) June 13, 2024
The above invariably implies that altcoins might pick up momentum around the same period projected by the analyst. Worthy of note is the fact that altcoins with larger market caps will begin the rally, after which other lesser projects will join.
Related: Ethereum Price Prediction 2024 – 2040
Ethereum’s Market Readings Today, Relative To The Crucial Support
According to the crypto assets tracker platform CoinGecko, Ethereum is changing hands at roughly $3,500, reflecting a slight 0.6% upswing from the previous day. Despite recording losses in its 7-day-to-date and 14-day-to-month data, the token’s month-to-date statistics were profitable, with a 21.6% gain.
Ethereum’s current price implies that the coin is trading above the support level highlighted by McKenna in this write-up. Hence, the token’s expansion potential come late June or early July could be said to be at safe levels for now.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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