Key Points
- Ethereum’s ETF anticipation leads to bullish surge in altcoins, while Ethereum-based memecoins show only modest gains.
- Despite positive market sentiment, some predict a potential price drop for Ethereum.
The anticipated approval of the Ethereum [ETH] ETF has resulted in a bullish surge in altcoins, while Bitcoin [BTC] remains close to the $60k mark.
This has led many to predict a bullish trend for July.
Impact on Ethereum’s Price
However, Ethereum saw a decline of 1.15% at the time of writing, displaying red candles on the daily chart.
IntoTheBlock data analysis indicated that despite the price decline, bulls outnumbered bears with a 7-day average of 107 bulls to 95 bears, suggesting buying pressure outweighed selling pressure.
Impact on Ethereum-based Memecoins
Contrary to expectations, the impending approval of the ETH ETF did not lead to significant gains in the memecoin sector.
While the top Solana memecoins surged by up to 14% in the last 24 hours, and leading Base memecoins saw a 7.6% increase, ETH memecoins showed only marginal gains.
An analysis of Dogwifhat [WIF], a Solana [SOL]-based memecoin, Brett [BRETT], a Base blockchain memecoin, and Shiba Inu [SHIB], an Ethereum-based memecoin, revealed this disparity.
According to CoinGecko, WIF and BRETT saw increases of 17.1% and 12.4% respectively, while SHIB was up by only 0.5%.
This suggests that the positive market sentiment surrounding Solana and Base memecoins did not extend uniformly to Ethereum-based memecoins following the news of the ETH ETF approval.
However, this did not diminish investor interest in the largest altcoin as underlined by Anomander, Founder at Legion Ventures, who stated that the crypto market has topped on the Ethereum ETF approval.
Crypto analyst, Michaël van de Poppe, shared a similar sentiment, noting that it seems likely that more attention will be focused on Ethereum rather than Bitcoin due to the Ethereum ETF.
Ethereum ETF Launch, Not a Good Sign?
Despite the positive sentiment, not everyone is optimistic about the impact of the ETH ETF on Ethereum.
Andrew Kang of Mechanism Capital speculated that the introduction of spot Ethereum ETFs could push ETH’s price down to $2,400.
He further pointed out that while there is potential for growth in ETH futures, the current lack of interest from savvy traders could signal concerns about the performance of ETH ETFs in the near future.
These analyses suggest that the market is not as bullish on ETH ETFs as it was on BTC ETFs, potentially leading to less dramatic price movements for Ethereum.