Ethereum price is at an important juncture with support at $3,400 tested and recovery above $3,600 ongoing. Bitcoin too is starting to shape the next crypto landscape this week after reclaiming ground above $65,500. With the two largest cryptocurrencies modestly in the green, investors are beginning to appreciate the sell-off as a blessing in disguise.
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Ethereum price is at an important juncture with support at $3,400 tested and recovery above $3,600 ongoing. Bitcoin too is starting to shape the next crypto landscape this week after reclaiming ground above $65,500. With the two largest cryptocurrencies modestly in the green, investors are beginning to appreciate the sell-off as a blessing in disguise. This means they can apply key dollar cost averaging practices, buy the dips, and eventually increase potential gains in the second half of the year.
Factors Likely To Drive The Next Altcoin Season
The crypto fear and greed index has fallen to 64—still showing greed among investors but significantly below last week’s figure of 74. This indicator by Alternative, monitors market sentiment with zero on the scale referring to extreme fear and 100 to extreme greed.
Since markets function as living entities, sentiment is driven by people. As euphoria increases, investors become greedy due to the FOMO. This propels prices higher but also introduces the risk of a drastic decline as some investors decide to take profits. It is rarely a good idea to buy when the crypto fear and greed index is near the extreme top.
On the other side of the fence, a drop in the metrics suggests greed is creeping in. Because sentiment is falling, many people choose to sell—some due to the fear of losing their capital or possibly to protect unrealized gains.
It is advisable to buy when the market is red and sell when it is green. With that in mind, investors might consider this to be a good time to buy into their favorite altcoins, ignoring the drop in the fear and greed index to 64.
Ethereum price has increased 1.3% in 24 hours to $3,585 on Thursday. The value growth, although minor, has reflected a 0.81% surge in the market cap to $438 billion. However, the second-largest digital asset faces a 30% slide in the trading volume to $14 billion—a factor likely to hamper potential growth in the upcoming sessions.
Nevertheless, investors seem to have set their sight on the approvable of the spot ETF. The Securities and Exchange Commission (SEC) approved the listing of spot Ethereum ETFs in May pending further approval for the operators of the products which will eventually give way to actual trading on stock exchanges.
The SEC also dropped investigations into Ethereum, further clearing doubts that Ether could be considered a security.
ETF analyst Eric Balchunas predicted earlier this week that Ethereum ETFs could start trading on July 2. This followed word that the SEC “sent issuers comments on S-1s today, and they’re pretty light, nothing major, asking for them back in a week.”
UPDATE: we are moving up our over/under date for the launch of spot Ether ETF to July 2nd, hearing the Staff sent issuers comments on S-1s today, and they’re pretty light, nothing major, asking for them back in a week. Decent chance they work to declare them effective the next… https://t.co/XJZ8JLwEFF
— Eric Balchunas (@EricBalchunas) June 14, 2024
The start of the actual trading of Ethereum ETFs could spark fresh interest in ETH and altcoins. Traditional investors would find it easier to buy ETH via exchanges, validating the crypto market.
Analysts at CoinGape expect this to be a moment of reckoning for altcoins like Solana, XRP, and Dogecoin which are believed to be the next in line for spot ETFs.
The move could be bullish for the entire crypto market, including Bitcoin, and possibly usher in the much-anticipated altcoin season.
Ethereum Price Stares At A 30% Breakout
Ethereum price is making key strides in its recovery following the correction to $3,400. The token currently sits above two exponential moving averages (EMAs), the 20-day and the 50-day.
A daily close above $3,600 resistance would mean that bulls are getting back in the game for a breakout past $4,000. The presence of an inverse head and shoulders (H&S) pattern on the daily chart could reinforce the bullish grip when validated.
This is a bullish pattern validated when the price breaches the neckline resistance around $3,800 in Ethereum price prediction case. Traders would enter above this resistance eyeing a 30% move close to $5,000.
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