Cryptocurrency markets are abuzz with excitement as signals of a Bitcoin ETF approval sent BTC prices soaring to $45,200, following a Matrixport report that anticipated a $5,000 increase. The focus now shifts to Ethereum (ETH), often referred to as the altcoin king, to see how it will respond to these market developments.
Two major factors to watch after the Spot BTC ETF approval will be the initial trading volume of ETFs and the timeline for ETH ETF applications’ approval. As the BTC ETF process has been stirring excitement for weeks, similar anticipation is expected for ETH in the coming months.
Despite positive developments such as the Ethereum Merge, negative inflation, increased network activity, and bonds issued by major banks on the network, ETH prices have yet to initiate a significant upward trend, lagging behind other altcoins experiencing massive surges.
The ETH/BTC chart indicates that ETH has been under a decreasing resistance line since September 2022, hitting a low of 0.049 BTC and confirming the long-term rising support line for the fourth time. This support has held for 1600 days, and the resistance line has been unbroken for 600 days, suggesting that high volatility days are ahead.
Weekly RSI divergence hints at increased volatility with upward price movements, reminiscent of the June-December 2019 period when ETH prices surged by 400%. Analyst Bob Loukas points to the ETH/BTC chart, predicting a potential bottom in January and a sustained rise for at least two years. Other analysts anticipate a swift recovery from the low, supported by the Dencun upgrade and other developments, with ETH prices expected to rise once the 0.06 BTC level is surpassed.