Altcoins
The hype around the launch of the ETF on Ethereum: “ETH rising sharply, altcoins to follow” – But…
- Despite the Ethereum ETF anticipation, ETH-based memecoins showed marginal gains.
- While some see bullish potential in Ethereum’s future, Andrew Kang has predicted a possible price decline.
Due to the expected approval of the Ethereum [ETH] ETF, altcoins are enjoying a bullish surge, while Bitcoin [BTC] it hovers close to the $60,000 mark.
This has led many to predict it as a bullish trend for July.
Source: CRYPT 38/X
Impact on the price of Ethereum
However, at the time of writing, Ethereum has fallen by 1.15%, showing red candles on the daily chart. But AMBCrypto’s analysis of IntoTheBlock data presented a contrasting view.
Data indicated that despite the price decline, bulls outnumbered bears with a 7-day average of 107 bulls to 95 bears, suggesting that buying pressure has outweighed selling pressure at the time of writing this article.
Source: IntoTheBlock
Impact on Ethereum-based memecoins
Contrary to expectations, the impending approval of the ETH ETF also did not lead to substantial gains in the memecoin sector.
While the upper part Solana’s Memecoin has increased up to 14% in the last 24 hours, and is the main one Basic Memecoin recorded an increase of 7.6%, ETH memecoins showed only marginal gains.
For in-depth analysis, AMBCrypto looked at the price action of Dogwifhat [WIF]A Solana [SOL]memecoin based on, Brett [BRETT]a basic blockchain memecoin and Shiba Inu [SHIB]a memecoin based on Ethereum.
According to CoinGecko, WIF and BRETT recorded increases of 17.1% and 12.4%, respectively, while SHIB increased by only 0.5%.
Source: Santimento
This disparity indicated that the positive market sentiment around Solana and Base memecoins did not spread evenly to Ethereum-based memecoins following the news of the ETH ETF approval.
However, this has not diminished investor interest in the largest altcoin, as highlighted by AnomanderFounder of Legion Ventures, who said:
“Obviously, the cryptocurrency market has moved past the approval of the Ethereum ETF. Keep blaming low-level celebrities for launching their own memecoins.”
Sharing a similar line of thought and drawing a comparison between the price action of BTC and ETH, crypto analyst, Michael van de Poppe went to X and noticed,
“Bitcoin dominance continues to peak at 58%. In this regard, it seems likely that we will have more eyes on Ethereum than on Bitcoin in the coming period, thanks to the Ethereum ETF.”
ETF launch on Ethereum: isn’t it a good sign?
However, not everyone was optimistic about the impact of the ETH ETF on Ethereum.
Andrea Kang of Mechanism Capital, in his recent post, hypothesized that the introduction of spot ETFs on Ethereum could drops the price of ETH to $2,400.
He said:
Source: Andrew Kang/X
Further in his analysis, he highlighted that while there is growth potential for ETH futures, the current lack of interest from more experienced traders could signal concerns about the performance of ETH ETFs in the near future.
“BTC ETFs have opened the door for many new buyers to make bitcoin allocations within their portfolio. The impact of ETH ETFs is much less clear.”
Overall, these analyzes suggest that the market is not as bullish on ETH ETFs as it was on BTC ETFs, which could lead to less dramatic price movements for Ethereum.