Key facts: ETH could outperform bitcoin after ETF approval, analyst says. The price of the cryptocurrency rose more than 20% in the last 24 hours. In less than 24 hours, the Ethereum cryptocurrency, ether (ETH), experienced a rise of more than 20% to almost $3,800 (USD). This is its maximum price in two months, which led to new projections for its market. “The market capitalization of altcoins has completed its correction,” said analyst Michaël van de Poppe regarding the deployment of ETH. According to his vision, the next step is for it to return to its historical maximum, which is approximately 65% from here, as the graph shows. Therefore, expect a boost for Ethereum.
Market capitalization of altcoins (cryptocurrencies excluding BTC). Source: Michaël van de Poppe. According to the analyst, Top altcoin ETH likely to hit all-time high in next 2-4 months. Currently, the cryptocurrency is 22% from its record, which was almost USD 4,900 more than two years ago, in November 2021. Meanwhile, bitcoin (BTC) has risen to USD 71,100 today, which is 3 % below its all-time high of USD 73,700 recorded two months ago. This exhibits lower performance of ETH and altcoins. The market rally came after expectations changed about an approval this week of ETH spot exchange-traded funds (ETFs) in the United States. The probabilities went from 25 to 75%, according to analysts James Seyffart and Eric Balchunas, while other actors strengthened this idea. From the Standard Chartered bank, the head of research for currencies and digital assets, Geoff Kendrick, stated today that it is 80 or 90% sure that ether ETFs will be approved this week. And he added that, after that, they expect inflows into such instruments of between USD 15,000 and 45,000 million in the next 12 months. The director of Standard Chartered specified that, with such a scenario and the upward trend of bitcoin, They visualize a price of USD 8,000 for ETH and USD 150,000 for BTC at the end of 2024. Then, by the end of 2025, they predict that capital inflows will take such currencies to USD 14,000 and USD 200,000, respectively.
Bullish months now seen for Ethereum
Analyst Miles Deutscher recalled that the price of BTC rose 75% in 63 days after its ETFs were approved in the United States in January 2024, as the graph shows. “If ETH follows the same trend (if approved), this would take it to USD 6,446 by July 23,” he emphasized.
Bitcoin price up and ether down. Source: Miles Deutscher. According to the trader known as Crypto Feras, ETH Might Even See Higher Momentum Than BTC Following Approval of the aforementioned instruments. He explains that's because, unlike bitcoin, Ethereum ETFs were never discounted. In fact, the market was underperforming in anticipation of disapproval. For the trader, the rise of more than 20% that ETH registers in the last 24 hours is a sign that approval of ETFs has begun to be discounted. “As we move forward, the market will continue to try to price it, pushing it far beyond our expectations,” he believes. He predicts that if BTC ETFs took the coin's price from $25,000 to $73,000, ETH can easily reach USD 7,000 or USD 9,000 with an approval. Furthermore, although the Ethereum market does not generate as much interest as that of bitcoin, its lower capitalization means that with lower volumes it has greater volatility. Meanwhile, the pseudonymous investor Jelle indicated that, with the current rise of ETH, its price came out of the downward trend that it registered for two months. This can be seen in the following graph.
ETH price over the last year. Source: Jelle. It deepens that, in the face of this movement, The first objective for the market is the USD 4,200 areasupport-resistance area of the 2021 bullish cycle. “Break that and the following will be new all-time highs,” he concluded.