“I will sell my ETH if it doesn’t reverse its trend in 3-4 weeks”

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By TP

Some expected the demand for cryptocurrencies to skyrocket with the launch of Ethereum exchange-traded funds (ETFs) in the United States last week. However, this is not what happened, instead selling pressure increased, affecting different investors. ETFs for the Ethereum cryptocurrency, ether (ETH), They ended their first week of trading with negative flowThis was due to the capital outflows experienced by Grayscale's ETHE, which previously operated outside the exchange. With this scenario, most of the main altcoins ended the week lower, including ETH.

ETH ETF flows in their first days of trading. Source: Sosovalue. “My altcoin portfolio took another hit after the Ethereum ETFs,” commented trader and analyst Michaël van de Poppe. This comment comes two months after he revealed that, due to the approval of such instruments, he was fully positioned in this market, projecting an upward trend. The specialist indicated that ether has depreciated again compared to bitcoin (BTC), which has been on the rise for the past week. In fact, it fell from the price of 0.05 BTC, a key support line that he expected it to hold to continue rising. However, he still sees reasons not to let go of his bullish thesis. For the analyst, the negative flows from Ethereum ETFs have generated a major setback in the sentiment and confidence of cryptocurrency investors. “It is very understandable,” he considered. However,this movement could be temporary. In fact, it may be an episode of “selling the news” as some predicted. This term refers to the strategy of selling an asset in the face of an expected positive event for the market in order to take profits. According to van de Poppe, “this is the last hurdle to overcome.” He expects the selling pressure to stop, just as happened with bitcoin, which, upon the launch of its ETFs on the US market at the beginning of 2024, experienced a temporary scenario of selling the news before continuing to rise to a new all-time high price.

Ethereum ETF performance fails to dampen bullish expectations

The analyst maintains that sooner than many expect There will be a bull run in the marketAs an argument, he points out that the amount of ETH issued in 2024 is equivalent to USD 160 million, which has been almost reached by the demand for Ethereum ETFs on their first day of trading.

Although ETFs ended the week with outflows, on the first day of trading they recorded inflows of USD 106 million. For van de Poppe, this shows that there is interest in the currency, so he expects it to have positive flow again. “If that doesn’t make you optimistic, then probably nothing will make you more optimistic,” he said. He then detailed that for the moment he is not going to get rid of his Ethereum holdings. “I will sell my ETH if the trend does not reverse in the next 3 or 4 weeks,” he detailed. “For now, I will maintain my positions because my thesis is that this has a short-term impact on the markets and it will change after the stagnation of Grayscale’s ETH exit,” the specialist concluded. These statements take place in a week in which, as BitcoinDynamic reported, Donald Trump gave a speech at the Bitcoin 2024 event to show his support for the industry if he wins the presidential election. In this sense, this event may have taken Ethereum's eyes off the ball.