Ethereum (ETH) is currently at a crossroads that could define its trajectory in the coming weeks. Renowned crypto analyst Michaël van de Poppe has shared a notably bullish perspective, highlighting Ethereum’s approach to its 2022 low as a potential springboard for a breakout.
In his analysis, Van de Poppe underscores the importance of Ethereum’s current positioning, suggesting that its proximity to last year’s low could be a catalyst for absorbing liquidity and igniting a bullish trend.
Analyst’ Ethereum Bullish Projection Amid Market Movements
Van de Poppe’s forecast hinges on the broader market context, particularly the potential approval of a spot Bitcoin exchange-traded fund (ETF) in the US. Should this approval materialize, he anticipates a significant impact on the ETH/BTC trading pair, potentially leading to a liquidation candle – a sharp price movement.
Subsequently, Van de Poppe predicts a substantial shift in market dynamics with funds rotating into Ethereum. This move, he believes, will be accompanied by a “bullish weekly divergence,” setting Ethereum on an upward trajectory.
#Ethereum approaches the low of 2022 and is likely going to take the liquidity there.
If an ETF approval for #Bitcoin happens, I think we’ll have a liquidation candle on ETH/BTC and after that a rotation into Ethereum, combined with a bullish weekly divergence. pic.twitter.com/kGq91S7kq9
— Michaël van de Poppe (@CryptoMichNL) January 9, 2024
Meanwhile, Ethereum appears to be struggling to catch up with Bitcoin’s price performance. It recently surpassed the $2,300 mark, echoing Bitcoin’s surge above $47,000 – its highest since April 2022.
However, Ethereum has seen a slight retracement and is currently trading around $2,249. This slight dip comes amid a week when the asset experienced a 5.8% decline, contrasting with its significant trading volume surge from $13 billion last Tuesday to over $23 billion today.
Upward Swing With Potential Spot Bitcoin ETF Approval
The critical factor in Van de Poppe’s analysis is the potential approval of a spot Bitcoin ETF in the US. The market is on edge, with major players like BlackRock leading the spot ETF race alongside others like Grayscale Investments, Valkyrie, and ARK 21Shares.
These firms have recently submitted updated 19b-4 filings for their proposed Bitcoin ETFs, with the market sentiment heavily leaning towards a positive outcome.
BlackRock just re-filed their S-1 based on last min comments given yesterday. Hard to tell what has changed at first glance, but imp thing is that the unheard of 24hr turnaround time bt filing, comments and re-filing tells us all parties aiming to get this show on road pronto. pic.twitter.com/61cPtGJ4Oy
— Eric Balchunas (@EricBalchunas) January 9, 2024
BlackRock, in particular, has stirred significant optimism in this spot Bitcoin ETF race. With an approval decision expected by January 10, tomorrow, such a development could bolster Bitcoin and catalyze a fund rotation into Ethereum.
Van de Poppe isn’t alone in his bullish stance on Ethereum. Crypto Tony, another prominent crypto analyst, shares a similar outlook. Tony posits that Ethereum’s path to a bullish phase could commence if it maintains above the key level of $2,130.
Currently trading above this crucial point, Ethereum’s stability at or above this level is considered a sign of market strength, potentially paving the way for future gains. Furthermore, a push towards and above the $2,500 mark could significantly bolster Ethereum’s bullish momentum, as highlighted by Crypto Tony.
The ETH range is simple. Remain above $2,130 and we are bullish .. Reclaim the range high at $2,500 and we are really bullish pic.twitter.com/YKOph2YbRY
— Crypto Tony (@CryptoTony__) January 8, 2024
Featured image from Unsplash, Chart from TradingView