Ethereum’s price chart remains painted red despite the highly anticipated launch of Ethereum ETFs in the US. However, some market indicators hint at a potential reversal.
Over the past month, Ethereum (ETH) has endured multiple price corrections leading up to the hotly debated launch of its own exchange-traded funds (ETFs). This article explores the current state of ETH and whether the upcoming launch can propel it to outperform its dominant counterpart, Bitcoin (BTC).
ETF Hype Fails to Lift Ethereum’s Price (For Now)
The crypto market, along with investors, has been eagerly awaiting the arrival of ETH ETFs. As of July 9th, 2024, the launch is expected to take place around July 15th. Data from Google Trends, analyzed by AMBCrypto, reveals consistent national interest in Ethereum ETFs throughout the last 30 days, reflecting the significant hype surrounding them.
However, despite the approaching launch date and evident market excitement, Ethereum’s price continues to struggle. CoinMarketCap data shows a drop exceeding 12% for ETH in the past week, bringing its price to $3,045.32 at the time of writing. This bearish movement could potentially stem from a lack of investor confidence in ETH. AMBCrypto’s analysis of Santiment data suggests a significant southward shift in ETH’s weighted sentiment last week, indicating dominant bearish sentiment surrounding the token.
A Look Back: Bitcoin’s Pre-ETF Performance
With ETH’s price struggling pre-launch, a natural comparison arises: how did Bitcoin perform leading up to its own ETF launch? Our analysis reveals a stark difference. Bitcoin’s price exhibited bullish momentum well before its ETF launch date. To be precise, BTC’s price started its ascent in November 2023, culminating in a peak around the launch date of January 10th, 2024. However, it’s important to note that Bitcoin’s price saw a decline soon after the launch.
Can Ethereum Buck the Trend?
While Bitcoin appears to have enjoyed a pre-launch price surge, the question remains: can Ethereum defy this trend with a bullish run in the coming week? Analyzing ETH’s daily chart offers some potential clues. A positive sign is the uptick in Ethereum’s Relative Strength Index (RSI) after it dipped into the oversold zone. Additionally, the Money Flow Index (MFI) also reflects a similar upward trend, suggesting a potential bullish shift for ETH in the near future.
However, a completely clear picture isn’t available. The Chaikin Money Flow (CMF) currently displays a southward movement, and the MACD indicator still indicates a bearish market advantage.
The Verdict: A Week of Uncertainty
With conflicting technical indicators and a recent dip in investor confidence, predicting Ethereum’s price movement with certainty is challenging. While Bitcoin enjoyed a pre-launch surge, it’s unclear whether ETH can replicate that success. The coming week will be crucial in determining whether Ethereum can capitalize on the ETF hype and potentially outperform Bitcoin.