- Ethereum’s 20% surge on improved ETF approval chances drives market gains, with Bitcoin crossing US$71K.
- Assets such as BONK, LIDO, and Pyth Network also record significant gains.
- Despite potential for a downturn, the current crypto rally sees significant trading, particularly on platforms like Coinbase.
Hold onto your hats it looks like we are going for a ride. While Ethereum is rallying 20% on the news around the ETF approval chances going from 25% to 75%, the whole market is on the move.
Related: ETH Prices Rally as ETF Rumours Swirl; Analysts Boost Approval Odds from 25% to 75%
Assets like BONK and LIDO have gained well over 20%, the Pyth Network even an impressive 32%, and Bitcoin is up almost 7% in the past 24 hours, moving well above the US$71K (AU$106K) mark.
According to Swissblock the current resistance level is around US$71.5K (AU$107K), having just broken through the old resistance level of US$67K (AU$100K).
With this in mind, the attention turns to the question of whether this is a sustained rally or largely based on the ETH hype. After all, the market was not anticipating an Ether ETF approval anytime soon.
Analysts at CryptoQuant noted that the price of BTC on Coinbase is higher than on other exchanges suggesting US investors on the exchange are buying the asset aggressively.
They said in a note that the potential bottom for BTC is in – based on the Short-Term Holder (STH) realised price. The STH represents a key level of support at $61.5K (the weighted average realised price) – falling below is likely to provoke bears, potentially turning it into strong resistance.
Proceed with Caution, Warns Chartist
Macro Economist and Chartist Henrik Zeberg warns that this bull market will be followed by a massive downturn. He told his 140,000 followers on social platform X, that they “may not like it” or “may not understand it”, but according to Zeberg the bull market has an expiry date stamped on it.
He wrote that initially US markets, including cryptos and small caps, are going to surge as investments rotate from large caps and foreign markets:
Everybody will become Euphoric and once again trust that the Fed will have our backs.
Henrik Zeberg He believes a recession will follow and despite a Fed intervention – aka time to get the money printer going – the market bounce will only be temporary as the economy faces stagflation.
According to Zeberg this will result in the largest recession and bear market since 1929.
Whether you believe Zeberg’s scenario or not, his track record is mixed at best. For example, in May 2020, he predicted that Bitcoin would crash to under US$2K, something that clearly never eventuated.
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