The long-awaited debut of spot Ethereum ETFs on July 23rd has cast a spotlight not only on Ethereum (ETH) itself, but also on altcoins with close ties to the Ethereum blockchain. Here, we explore three altcoins that could potentially benefit from this development, based on historical trends and technical analysis.
1. Uniswap (UNI): Riding the Ethereum Wave
Uniswap, the leading decentralized exchange built on Ethereum, stands out as a prime candidate. UNI, its native token, exhibits a strong correlation with ETH due to its reliance on the Ethereum network for facilitating token trades. This correlation is supported by data from Macroaxis, making UNI a potential beneficiary of the increased interest in Ethereum spurred by the ETFs.
At the time of writing, UNI is trading around $7.57, presenting a possible “buy the dip” opportunity after a 21.31% decline since the month began. Adding fuel to the bullish fire is the recent accumulation of UNI by crypto whales, signifying potential investor confidence.
Technical indicators like the Awesome Oscillator (AO) with its green histogram bars suggest a possible reversal of the downward momentum. If this trend holds true alongside continued accumulation, UNI’s price could rise above $8 in the near future. Bulls maintaining control could even push the price up to $9.40 or even $10.03.
However, it’s important to remember that UNI’s bullish trajectory hinges on a strong performance by ETH. If ETH underperforms, UNI’s price could slip to $6.76.
2. Pepe (PEPE): A Meme Coin Poised for a Breakout?
No altcoin discussion is complete without mentioning Pepe (PEPE), the top meme coin built on Ethereum. PEPE recently broke free from a descending channel pattern, a technical indicator suggesting a downtrend. This breakout saw the token reach $0.000013 before a slight retracement to $0.000012.
While PEPE’s price currently exhibits sideways movement, the Accumulation/Distribution (A/D) line indicates a gradual rise in buying pressure. Additionally, the Relative Strength Index (RSI) remains above 50, signifying ongoing bullish momentum.
Should ETH climb towards $4,000, PEPE is likely to be among the altcoins making significant gains. This could potentially lead to a price retest of $0.000015.
3. Ethereum Name Service (ENS): Transparency Boost from Bitwise
Earlier reports identified ENS as an altcoin with potential to benefit from the Ethereum ETF approval. This prediction materialized with ENS reaching the projected price of $28.35 soon after.
However, the story doesn’t end there. Bitwise Invest, an ETF issuer, announced on July 23rd that it would be the first to integrate ENS subnames for each address within its ETF. This move leverages the Ethereum Name Service to provide transparency by allowing direct verification of holdings on the blockchain.
This development, along with the overall trend of ENS ascending and finding support at higher price points, positions it as another potential beneficiary of the Ethereum ETF launch. The chart suggests a possible breakout above the $30 resistance level, pushing the price towards $34.32.
However, failing to overcome this resistance could lead to a drop to $26.61.
A Word of Caution: Delayed Impact on Altcoins
It’s important to acknowledge that some analysts, like Konstantin Shulga, CEO of Finery Markets, believe the full impact of the ETFs on altcoin prices might take time to materialize. He suggests a timeframe of six to nine months for complete integration into financial products and widespread adoption.
Conclusion
The launch of Ethereum ETFs presents an exciting opportunity for the cryptocurrency ecosystem. While the immediate impact on altcoin prices might be uncertain, several altcoins with strong ties to the Ethereum network stand to gain in the long run. Investors should conduct thorough research and consider expert opinions before making any investment decisions.