Cryptocurrency analyst Michael van de Poppe predicts that Ethereum (ETH) will soon bottom out, with the upcoming news about the Ethereum ETF potentially triggering significant market moves.
Van de Poppe’s analysis points to a classic “sell the rumor, buy the news” scenario, which can lead to substantial price fluctuations. At the time of writing, the price of Ethereum is $3,122.79, showing an increase of 1.02% in the last 24 hours. Its market capitalization is approximately $375.1 billion.
Ethereum ETF news can lead to volatility
Van de Poppe expects the upcoming Ethereum ETF news to have a significant impact on the market. He points to the “sell the rumor, buy the news” strategy, where investors sell assets based on rumors and buy them back when the news actually comes out. This approach often causes strong price fluctuations.
Van de Poppe’s forecast underlines the possibility that Ethereum will experience a significant price increase once the ETF news is officially announced. Although he expressed doubts about the approval of Ethereum ETFs in May, he suggested that the SEC would delay the approval process rather than reject the applications entirely. This delay could push the market toward possible approvals later in August.
ETH price stability points to possible recovery
The technical analysis of the Ethereum market over the past 24 hours shows significant movements in key indicators. The Alligator indicator, which includes the jaw, teeth and lips, is located at 3055.21, 3020.53 and 3013.32 respectively. This convergence of values indicates that the market may be entering a trend formation phase, which signals the end of a consolidation period and the beginning of a new trend.
Moreover, the Coppock curve, currently at -4.87, shows bearish momentum. Still, the overall trend has seen significant increases since late 2023, underscoring Ethereum’s resilience. Despite the bearish Coppock curve, Ethereum’s price stability and positive momentum indicate the possibility of a significant price increase once the ETF news is confirmed.
Data from Coinglass shows that there are significant changes in the ETH derivatives market. Total volume fell 41.80% to $15.20 billion, while options volume fell 51.55% to $320.63 million. Despite these declines, open interest increased 1.28% to $11.89 billion and open interest in options increased 1.63% to $6.38 billion.
Source: https://cryptobenelux.com/2024/05/19/analist-ethereum-prijs-zal-binnenkort-zijn-dieptepunt-bereiken/
