• 30 May, 2024

Ethereum ETF Approval Hopes for August, Bitcoin Struggles Continue

Notable analysts have provided insights into the recent performance of major crypto like Bitcoin and Ethereum, offering predictions that could influence investor strategies in the coming months. Amid fluctuating market conditions, a specific focus has been placed on the potential approval of an Ethereum ETF and Bitcoin’s current market dynamics.

Michaël van de Poppe recently highlighted a key development regarding the Ethereum ETF, which is not expected to receive approval in May. Nonetheless, van de Poppe suggests that the market may be underestimating the chances of its approval in August. Despite the prevailing sell-off tendencies in Ethereum, he remains optimistic about a positive outcome later in the year, which could lead Ethereum to perform robustly if the ETF receives the green light.

Conversely, Bitcoin’s market behavior has raised concerns among investors. The cryptocurrency has witnessed a significant decline, dropping by 10% over the past week and approaching a critical trading price near $55,000. 

Scott Melker, a seasoned crypto analyst, has emphasized the breaking of crucial support levels, which now pose as resistance, potentially precipitating further declines. According to Melker, the absence of Bitcoin reaching oversold status on the Relative Strength Index (RSI) – a common indicator for potential rebounds – signifies a weak buying interest at current levels.

Melker points to the pattern of lower highs and lower lows observed on Bitcoin’s charts, indicating persistent bearish momentum. He predicts that the market may only be experiencing the beginning of a downward trajectory, suggesting,

“This is still ONLY a 23% correction, very shallow for a bull market and consistent with other corrections in this run. We are yet to see a 30-40% pullback during this bull market, like those of the past.”

The analysis provided by van de Poppe and Melker sheds light on the immediate challenges and potential opportunities within the cryptocurrency markets. As Ethereum eyes potential regulatory approval and Bitcoin grapples with bearish trends, investors are advised to monitor these developments closely. The contrasting scenarios underscore the volatile and unpredictable nature of cryptocurrencies, where regulatory shifts and market sentiments can drastically alter the investment landscape.

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