Saturday, February 24, 2024

Bitcoin ETF buzz fizzles out, Ethereum seen outshining it next year, says JP Morgan.

In a recent report, JP Morgan analysts predicted that the price of Ethereum (ETH) will certainly surpass the performance of Bitcoin in 2024. After nearly three weeks of consolidation, Ether traded in the $2,400 range; however, this rise appears to have lost steam as the price of Bitcoin drops this week. Despite the hoopla around the approval of the Bitcoin ETF, ETH is still essentially neutral as other cryptocurrencies perform better. Due to several factors, including a decline in on-chain activity, a hold-up in the US Securities and Exchange Commission (SEC) approving an ETF, the rapidly approaching holiday season, and a lack of demand driving up the price of Bitcoin, ETH is expected to drift sideways in the near future.

The SEC postpones the Ethereum ETF.
According to James Seyffart, a Bloomberg analyst, the Commission has chosen to postpone the Invesco Galaxy Ethereum ETF. “This was early but completely expected,” the analyst continues.

Similar to Bitcoin’s ETFs, Invesco and Galaxy Digital applied for an Ether spot ETF in September, although it’s probable that Ether’s will take longer for the SEC to make a judgment. The Commission’s position on the classification of Ether as a commodity or a security is still up in the air, which adds to the speculation surrounding the establishment of an Ethereum ETF.

The Ethereum price remains neutral-to-bullish.

The price movement of Ethereum produced an ascending triangle configuration between June 2022 and November 2023. The asset price is creating equal highs and lower lows in this technical configuration, which is positive. Three different higher lows and three equal highs occurred in Ether’s scenario.

When the equal highs are connected, a horizontal resistance level at $2,030 is shown. On November 20, this level was breached, signifying that the pattern’s upside potential had been triggered. By measuring the width of the triangle and extending it higher, the ascending triangle arrangement predicts a 43% upswing to the $2,943 level.

Following the breakout in Ethereum price, there was a 16% increase to a local high of $2,403. Since then, the price of ETH has decreased by 6.3%, trading at $2,252. The smart contract token is probably going to move in a sideways fashion in the future, between the weekly resistance level at $2,539 and the base of the ascending triangle at $2,030.

The Ethereum price can rise to its theoretical target of $2,943, or the psychological level of $3,000, if the $2,539 price flips decisively.

Since September 30, Ethereum’s social dominance measure has been declining, indicating a drop in investor interest in ETH.

The Santiment data indicates that on-chain volumes peaked on November 10 and have been progressively declining ever since. The whale transaction count, which has also decreased, is comparable.

The active addresses have been rising since mid-September, despite the fact that this is bearish in the short term. Additionally, network growth has been stable, indicating that investors are being patient with the medium-to-long-term outlook.

A clear break above $2,539 might indicate that the future of ETH is bright. The price of Ethereum might target a retest of the psychological $3,000 mark in such a scenario.

However, a breach of the $2,030 support level would lead to a 15% drop in the price of Ethereum, bringing it down to $1,727.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
RELATED ARTICLES

Most Popular