Bitcoin Waits for the Ethereum Story to Develop

Alexander Kuptsikevich
Published: May 22, 2024, 08:10 GMT+00:00

Ethereum has rallied around 22% since Monday evening, surpassing $3800.

Bitcoin Waits for the Ethereum Story to Develop

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Bitcoin Faces Profit-Taking Pressure Below $70K While Ethereum Surges Above $3800

The crypto market cap has stabilised at $2.6 trillion after an impressive surge following the Ethereum rally. Among the top coins over 24 hours, Toncoin is leading the decline, falling 5%, while Dogecoin is leading the way with a 3.4% increase.

Bitcoin is losing 1.9% in 24 hours to just below $70K, having come under pressure after it rallied above $71.3K, as short-term speculators rush to take profits around the all-time highs reached in March. The local highs are just below the peaks in April and March, and now all eyes are on the market’s next move. A break of resistance at $72K has the potential to trigger a real FOMO. A pullback below would force a $60K correction scenario to be considered as the main one.

Ethereum has rallied around 22% since Monday evening, surpassing $3800. Technically, we got a signal of a powerful spurt above the 50-day moving average, meaning a return to the bull trend. Short-term, Ethereum has a clear path to $4000, the March peak, after which the bulls can target $4600. Now is the time when Bitcoin’s next move depends on Ethereum.

Crypto News

According to media reports, the US SEC has asked companies to update Form 19b-4 in applications to launch a spot Ethereum-ETF. Bloomberg raised the odds of spot Ethereum-ETF approval from 25% to 75% following the news.

Management company Fidelity removed the steering clause in its updated Form S-1 application for a spot Ethereum-ETF. Galaxy Research believes that staking is the main stumbling block to launching an Ethereum-ETF in the US.

Standard Chartered expects the Ethereum-ETF to be approved as early as this week. The deadline for applications from VanEck and Grayscale is 23 May.

However, the SEC’s action does not mean that spot ETH-ETFs will necessarily be approved in May. Potential issuers need to approve a Form S-1 before launching the instrument.

Telegram’s crypto ‘Wallet’ has opened a P2P auction for the NOT, a token of the Web3 gaming project Notcoin. Users will be able to buy and sell coins in Telegram using more than 290 supported payment methods.

by FxPro’s Senior Market Analyst Alex Kuptsikevich

About the Author

Alexander is engaged in the analysis of the currency market, the world economy, gold and oil for more than 10 years. He gives commentaries to leading socio-political and economic magazines, gives interviews for radio and television, and publishes his own researches.

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