A surprising turn of events
For those observing the crypto market on Wednesday, the situation may have been perplexing. Although a Spot Bitcoin ETF was approved by the SEC, Bitcoin (BTC) did not react. In contrast, Ethereum (ETH) soared immediately after the news was released.
After a false approval announcement on Tuesday, which caused BTC to briefly skyrocket before plummeting back down, the manipulators in the market were exposed. But when the real approval news arrived on Wednesday, BTC barely reacted, and the market instead rallied behind Ethereum.
Has BTC peaked?
From a practical standpoint, BTC may have reached its peak, at least for now. In just over a year, BTC has surged from $16,500 to $48,000, nearly tripling in value. However, as BTC encounters significant resistance and reaches key trend lines, it may be time for a healthy correction.
The rise of Ethereum
In contrast, Ethereum has lagged behind not only BTC but also many other strong altcoins. Over the same period, ETH has seen a respectable 119% increase, but it pales in comparison to BTC’s growth.
Therefore, it is high time that the price of ETH reflects its potential, considering its crucial role in the crypto ecosystem. Wednesday’s significant increase in price pulled ETH out of its upward channel since June 2022.
A weekly close above the upper trend line and resistance could transform them into support, providing a strong foundation for ETH to continue its upward movement.
Potential bullish pattern
On the hourly time frame, ETH has formed a bull flag. This pattern suggests a higher likelihood of continued upward momentum. The measured move from this flag pattern could push ETH close to the $3,000 mark.
Source: Trading View
Hot Take: The Crypto Market’s Shifting Tides
The recent approval of a Spot Bitcoin ETF by the SEC had an unexpected outcome. While Bitcoin remained relatively unaffected, Ethereum experienced a significant surge in price. This development raises questions about the future of BTC and puts a spotlight on the potential of ETH. BTC may have reached its peak for now, while ETH has room to grow and align its price with its importance in the crypto ecosystem. As cryptocurrencies continue to evolve, the market dynamics are constantly shifting, creating opportunities and challenges for investors and traders alike.
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