Impact of ETF Launch on Ethereum Price
The global cryptocurrency market has experienced a significant downturn in the past 24 hours, with Ethereum (ETH) bearing the brunt of the losses. The ETH token saw an 8.20% drop, bringing its price down to $3,141. This negative sentiment can largely be attributed to the recent launch of an ETF, which had widespread effects on the entire cryptocurrency market.
Market Analysis and Price Movement
Following the ETF launch, the total market capitalization saw a decline of over 4% to $2.3 trillion from its weekly peak of $2.60 trillion. Major players like Bitcoin and Binance Coin also experienced losses, with BTC falling by over 3% to $63,900 and BNB dropping 4.18% to $560. Despite the price fluctuations, the total trading volume of the cryptocurrency market increased by 15.84% to $87.03 billion, indicating active trading.
In the midst of the bearish sentiment, experts predict that Ethereum’s price may recover and surge after the recent decline. There is a possibility that ETH could undergo a 20% retracement to the $2,820 level, followed by a potential 90% rally that could push its price to a new all-time high of around $53,800 by the end of Q3.
Long-Term Outlook and Technical Analysis
Market analyst Michael Van de Poppe is bullish on ETH in the long term, believing that it is currently undervalued in the cryptocurrency market. He predicts that Ethereum’s price could soar to all-time highs between $7,000 and $7,500. However, technical indicators show a bearish trend in the short term, with the RSI index and MACD line signaling downward movements. This suggests that bears currently have control over the ETH market, but oversold conditions may signal a potential turnaround in the future.
