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| By Beth Canova |
Record inflows into newborn spot ETFs and surging open interest on Bitcoin have fueled the recent price rally of BTC to $53,000.
For the short-term perspective, Bitcoin feels heavy and has been correcting today. Our team wouldn’t be surprised to see $48,500 tested again before the rally can continue:
After a correction, BTC can easily clear the air for higher targets ranging between $57,000 and $63,000.
Meanwhile, the narrative has shifted toward Ethereum. Its trading volume on some exchanges surpassed Bitcoin's yesterday and hundreds of millions of dollars have been added to its open interest.
This surge reflects anticipation for ETH's breakout performance.
Having breached the $2,900 barrier for the first time in almost two years, ETH reached another important target of $3,040, before correcting today:
At the time of writing, it is precisely at $2,900, undergoing a test to ascertain whether this will hold as a support level.
And remember that the price of ETH/BTC is poised to break out from its 7-year-old triangle pattern at some point this year.
Such a breakout is anticipated to trigger a significant price surge for ETH and alts, probably while nearing the deadline for ETH spot ETF approval.
And that next deadline may be sooner than you may think …
As you can see, there are several Ethereum spot ETFs waiting for approval. But next up is the VanEck application scheduled for a final decision on May 23, 2024.
I may seem preemptively bullish by saying I’m confident we will see a spot ETH ETF this year, but I am not the only one.
According to CoinTelegraph, Bloomberg ETF analyst James Seyffart is also confident the SEC will give the green light, because it implicitly accepted ETH as a commodity when it approved Ether futures ETFs back in September 2023.
Ethereum is already pushing ahead on upward momentum. But an ETF approval will be like rocket fuel on a fire.
Geoff Kendrick, the head of FX Research, wrote in a note that not only is an ETF approval likely, it could send ETH’s price to $4,000.
That’s a 70% increase from today’s already impressive prices!
He anticipates that May 23 will be for Ethereum what Jan. 10 was for Bitcoin.
And remember, Bitcoin’s halving is tentatively scheduled for April. The halving cuts the amount of Bitcoin miners earn for validating blocks on the blockchain in half.
In essence, that cuts the available supply of Bitcoin … at a time when demand is soaring.
What comes next is a rush of liquidity into Ethereum and the altcoins, as Bitcoin’s price grows too high for retail investors to hop in.
Now, add in additional demand from the Ethereum ETFs … and the age of Ethereum seems just about ready to dawn.
And with it will come the rise of the altcoins.
Keep an eye on your coming Weiss Crypto Daily issues for additional ways you can prepare your portfolio for the Ethereum ETFs and the subsequent alt season.
After all, you’re going to want to be ready to ride this wave.
Best,
Beth Canova
