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Bitcoin has once again climbed above the $71,700 resistance level, approaching the $72,800 boundary. Altcoins have also become more active. The good news is that the price maintaining closures above $69,000 weakens the likelihood of a deeper correction. Moreover, Ethereum has also climbed above a key region. So, what are the current predictions?
Ethereum (ETH)
The correction in the ETHBTC pair, which continued down to the 0.048 level, has finally reversed. This was a significant bottom signal, as these areas were last tested during the major drop in January and in mid-2022. Now, the pair has returned to the 0.05 support level.
Another reason for the increase in Ethereum (ETH) price is related to whale activity. According to Glassnode data, ETH whales holding between 1,000 and 10,000 ETH have started to accumulate again. This group of whales has been gradually increasing their reserves since March 17.
Ethereum and Spot ETF
Investors’ interest in Ethereum was sparked by an application made by Grayscale on November 5. Similar to GBTC, Grayscale has applied to convert its existing Ethereum trust, ETHE, into a Spot Ethereum ETF, and the evaluation is ongoing. The world’s largest asset manager, BlackRock, also applied on November 9.
BlackRock’s entry into the game was a turning point, and we experienced something similar for the Bitcoin ETF in June 2023. As of April 8, there are a total of seven spot Ether ETFs waiting for a decision from the SEC. Five days ago, the SEC initiated a comment period for the Fidelity, Grayscale, and Bitwise spot Ether ETFs.
According to CoinShares data, institutional investors will have allocated a total of $13.8 billion to cryptocurrencies by 2024. Approximately $12 billion of this will go directly to Bitcoin ETFs, with Ethereum in second place.
ETH price, if it can sustain above $3,700, could ignite a move towards $4,100 and $4,500. For now, the inflation data coming on Wednesday will be decisive. If inflation decreases, it could lead to discussions of interest rate cuts, which would be positive, but the opposite scenario could prompt the Fed to delay rate cuts or even consider an additional increase this year.
