Altcoins
Hype for Ethereum ETF Launch: “Pumping ETH, Followed by Altcoins” – But…
- Despite the anticipation around the Ethereum ETF, ETH-based memecoins have shown marginal gains.
- While some see bullish potential in Ethereum’s future, Andrew Kang predicted an eventual price decline.
Due to the expected approval of the Ethereum [ETH] ETF, altcoins benefit from a bullish surge, while Bitcoin [BTC] is near the $60,000 mark.
This has also caused many people to predict this as an uptrend for July.
Source: CRYPTE 38/X
Impact on Ethereum Price
However, at the time of writing, Ethereum is down 1.15%, showing red candles on the daily chart. But AMBCrypto’s analysis of IntoTheBlock data presented a contrasting view.
The data indicated that despite the price decline, bulls outnumbered bears with a 7-day average of 107 bulls compared to 95 bears, suggesting that buying pressure was greater than selling pressure at the time. of publication.
Source: In the block
Impact on Ethereum-based memecoins
Contrary to expectations, the upcoming approval of the ETH ETF has also not led to substantial gains in the memecoin sector.
While the top Solana Coins jumped up to 14% in the last 24 hours, and the leader Basic parts saw a 7.6% increase, ETH memecoins only showed marginal gains.
For in-depth analysis, AMBCrypto looked at the price action of Dogwifhat [WIF]A Solana [SOL]-based on memecoin, Brett [BRETT]a basic blockchain memecoin, and Shiba Inu [SHIB]a memecoin based on Ethereum.
According to CoinGecko, WIF and BRETT saw increases of 17.1% and 12.4% respectively, while SHIB only rose 0.5%.
Source: Santiment
This disparity indicates that the positive market sentiment around Solana and Base memecoins did not extend evenly to Ethereum-based memecoins following the announcement of the ETH ETF approval.
However, this has not diminished investor interest in the largest altcoin, as highlighted Anomanderfounder of Legion Ventures, who said:
“Clearly, the crypto market has moved beyond the approval of the Ethereum ETF. Keep blaming low profile celebrities for starting their memecoins.
Sharing a similar line of thought and drawing a comparison between the price action of BTC and ETH, the crypto analyst, Michael van de Poppe took X and wrote down,
“Bitcoin dominance continues to peak at 58%. In this regard, it seems likely that we will have more focus on Ethereum rather than Bitcoin in the coming period thanks to the Ethereum ETF.
Launch of the Ethereum ETF, not a good sign?
However, not everyone was optimistic about the ETH ETF’s impact on Ethereum.
Andrew Kang of Mechanism Capital, in his recent article, speculated that the introduction of Ethereum spot ETFs could drive ETH price down 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 savvy 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 is on BTC ETFs, which could lead to less dramatic price movements for Ethereum.