SEC Approves Spot Bitcoin ETFs, Ethereum Surges
In a surprising turn of events, the Securities and Exchange Commission (SEC) announced the approval of all Spot Bitcoin ETFs. However, while Bitcoin (BTC) remained relatively unchanged, Ethereum (ETH) experienced a significant surge, gaining over 10% on the day.
Puzzling Outcome: Bitcoin Remains Flat as Ethereum Soars
For those following the crypto market on Wednesday, the SEC’s announcement may have caused confusion. Despite the approval of Spot Bitcoin ETFs, Bitcoin showed little reaction. In fact, it was Ethereum that saw a rapid increase in price as soon as the news broke.
After the recent SEC X account breach and the false approval announcement on Tuesday, Bitcoin did experience a temporary surge to $48,000 before quickly plunging back down. However, with the manipulators exposed and their plans revealed, the market seemed to have anticipated a genuine approval and instead rallied behind Ethereum.
Bitcoin’s Future Uncertain, Ethereum’s Time Has Come
From a practical standpoint, Bitcoin may have reached its current peak. Over the past year, Bitcoin has gone from $16,500 to $48,000, almost tripling in value. However, the cryptocurrency recently encountered major resistance and came up against a trend line dating back to mid-2019. This may indicate that a correction is due for Bitcoin.
In contrast, Ethereum’s price has lagged behind not only Bitcoin but also many other fundamentally sound altcoins. Despite a respectable 119% increase over the same period as Bitcoin, Ethereum’s growth has been slower. Given Ethereum’s significant role in the crypto ecosystem, it is high time for the price to reflect its potential.
Ethereum Breaks Out of Upward Channel, Strong Price Structure
On Wednesday, Ethereum’s price broke out of the upward-sloping channel it has been in since June 2022. This breakout suggests a potential shift in the market sentiment towards Ethereum. If the weekly close confirms this breakout and turns the previous resistance into support, it could pave the way for further upward movement for Ethereum.
Bullish Flag on Hourly Chart Indicates Further Upside for Ethereum
Zooming in on the hourly chart, Ethereum has formed a bullish flag pattern. This pattern typically suggests a continuation of the upward price movement. If this bullish flag plays out, Ethereum could see a measured move that brings its price close to $3,000.
*Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.*
With the approval of Spot Bitcoin ETFs, the cryptocurrency market witnessed a puzzling outcome. While Bitcoin remained relatively flat, Ethereum surged to new highs, signaling a potential shift in market sentiment. As Bitcoin’s future becomes uncertain, Ethereum’s time in the spotlight seems to have arrived. As the market continues to evolve, it will be intriguing to see how these two cryptocurrencies fare in the coming months.
Analyst comment
Positive news for Ethereum and neutral news for Bitcoin. The approval of Spot Bitcoin ETFs by the SEC had little impact on Bitcoin’s price, but Ethereum experienced a significant surge. This suggests a potential shift in market sentiment, with Ethereum’s price reflecting its potential. Bitcoin’s future is uncertain, and a correction may be due. Ethereum’s breakout from an upward channel and formation of a bullish flag pattern indicate further upward movement, potentially reaching close to $3,000. The market will continue to evolve, and the performance of these two cryptocurrencies in the coming months will be intriguing.
