The New Driving Force of the Cryptocurrency Market
The approval of the Ethereum spot ETF provides traditional investors with a more convenient and secure way to invest in cryptocurrencies. This not only increases market liquidity but also enhances the credibility of cryptocurrencies as an asset class. It is expected that this move will attract more institutional investors to enter the market, thereby driving the overall growth of the cryptocurrency market.
Data shows that after the approval of the Bitcoin spot ETF, its price surged by 75%. The approval of the Ethereum spot ETF may have a similar positive impact on the price of ETH. In fact, when rumors of the approval of the Ethereum spot ETF circulated earlier this week, ETH surged by 20% overnight. After the exact news was announced early this morning, the price of Ethereum quickly rebounded from a low of $3523 to over $3949, just a step away from the $4000 mark, demonstrating the market's positive response to this news. Previously, Coinbase released a report stating that ETH benefits from the combination of "value storage" and "technology tokens" narratives, and is optimistic about ETH's potential to outperform the market in the second half of the year.
Potential Beneficiary Altcoins
The launch of the Ethereum spot ETF may drive the revival of the altcoin market. As the native token of Ethereum, the importance of ETH is not only reflected in its function as a currency but also as a core indicator of the Web3 ecosystem. Since most DEXs use ETH as the primary trading pair, the rise in ETH price is likely to passively drive the rise of altcoins.
Furthermore, as Ethereum is a smart contract platform that represents various aspects of the entire Web3 ecosystem, including L1/L2 solutions, LSD, restaking, DeFi, GameFi, SocialFi, etc., the approval of the ETF will also be an important force driving the development of the entire Web3 narrative, and the growth of its ecosystem will provide more opportunities for altcoins.
Bitcoin Market Analysis: In this round of major gains, the most profitable is Ethereum, while Bitcoin can only follow closely behind in second place, regardless of whether it rises or falls. The trend is fast both in rising and falling, as driven by the news. Since Wednesday, we have been shorting from the high, all the way down to the $66,260 level, perfectly reaching our expected target. Even if we shorted again from $68,000 in the early trading today, we directly saw the $67,000 mark. This wave of decline was completely within expectations. First, the market stimulated by the news, rising and falling quickly, after all, in the case of Ethereum's soaring, Bitcoin is in a stagnant state, making no progress. Secondly, it is the institutions and large retail investors quietly leaving the market, leaving only small retail investors struggling to go long. Thirdly, the divergence on the four-hour technical chart, the decline is only a matter of time.
Technical retracement is normal and can also be seen as a correction after a big rise. The key point now is at the $65,000 mark. If it falls below, we cannot simply see it as a correction, perhaps it is a waterfall, after all, there is still room below. Looking at the trend over the past few months, Bitcoin has experienced a major pullback several times after attempting to break through the $70,000 mark. If the support is effective, that's even better, as a second surge is expected to bring new highs. So at this time, we need to be patient and wait, and maintain a high-selling and low-buying strategy for futures contracts. Pay attention to the resistance around $68,500 and the support around $66,000.
ETH: Premeditated or Accidental? After a sharp drop to the $3522 level, it quickly rebounded to the $3907 level. You can analyze this trend carefully. Since this range has emerged, short-term operations should be based on this range, maintaining a high-selling strategy.
SOL: This wave of sharp rise reached the expected $180 level, but exceeded expectations to reach the $189 level. Next, you can refer to the trend of ETH, but SOL remains a top performer among altcoins. For spot traders, the pullback still provides an opportunity for long positions.
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