As of Jan. 9, crypto analyst van de Poppe shared insights in an X post, suggesting that Ethereum was approaching its 2022 low and could absorb liquidity at that level.
#Ethereum approaches the low of 2022 and is likely going to take the liquidity there.
If an ETF approval for #Bitcoin happens, I think we’ll have a liquidation candle on ETH/BTC and after that a rotation into Ethereum, combined with a bullish weekly divergence. pic.twitter.com/kGq91S7kq9
— Michaël van de Poppe (@CryptoMichNL) January 9, 2024
Ethereum’s Potential Surge and Analyst’s View
He speculated that if the U.S. SEC approves a spot ETF for Bitcoin (BTC), it might lead to a liquidation candle on the ETH/BTC trading pair chart. Following this, van de Poppe foresaw a shift of funds into Ethereum, accompanied by a bullish weekly divergence.
Recent data reveals Ethereum’s current value at $2,276, indicating a notable 3.04% increase in the past 24 hours. The trading volume during this period surged by 36.14%, reaching $12.48 billion.
After this modest rally, ETH experienced $21.60 million in short liquidations and $11.79 million in long liquidations, as reported by CoinGlass. Van de Poppe’s analysis centers on the SEC’s potential approval of a Bitcoin spot ETF, with BlackRock leading the charge.
BlackRock and other major firms like Grayscale Investments, Valkyrie, and ARK 21Shares have submitted updated filings for their proposed spot Bitcoin ETFs.
Market sentiment is building as BlackRock expresses confidence in SEC approval, with expectations for a decision as early as this Wednesday. A positive outcome could trigger a ripple effect in the broader cryptocurrency market, influencing Bitcoin and potentially leading to a rotation of funds into Ethereum.
Van de Poppe’s prediction hinges on the idea that Bitcoin spot ETF approval may initiate a significant uptrend for Ethereum. Traders and investors closely monitor these developments, even though it remains anyone’s guess as to what – and when anything – will happen exactly.
