The cryptocurrency market experienced a downturn on January 12, leading to losses for many investors despite optimism around potential spot Bitcoin ETF approvals. Bitcoin dropped by 6.45% in the last 24 hours, trading at $43,438. In contrast, Ethereum has managed to step forward as a prominent project in the crypto market.
Ethereum has seen a minor loss of only 0.85% in the same period, continuing to trade at $2,596. Analysts suggest that there could be a short-term price correction for Ethereum based on on-chain data analysis.
Following the SEC’s approval of all spot Bitcoin ETF applications on January 11, attention shifted to Ethereum, with many analysts predicting future spot Ethereum ETF submissions. This speculation has contributed to Ethereum’s momentum compared to other cryptocurrencies.
According to The Block’s Data Dashboard, 89.4% of the circulating Ethereum supply is currently in profit, the highest rate since 2021. This high percentage of profitable supply may encourage investors to take profits, potentially leading to short-term selling pressure on Ethereum.
André Dragosch, Research Head at ETC Group, commented on Ethereum’s price surge, suggesting that the recent SEC approvals of spot Bitcoin ETFs could pave the way for spot Ethereum ETF products, potentially boosting Ethereum’s value. Dragosch also noted that the high percentage of Ethereum in profit could have a stabilizing effect, especially as long-term holders may be less inclined to sell, while short-term investors might still seek profits, overall supporting a continuing bull market.