One analyst thinks Ethereum’s price is primed for a strong rally and will outperform Bitcoin in the days ahead of the spot ETH ETF launch.
Last year, when rumors swirled that the United States SEC would approve a spot Bitcoin ETF after a 10-year wait, BTC prices began rising.
The expansion was clear from mid-October. However, when this happened, no one knew what Solana bulls were preparing.
This time, SOL was reaping higher, reversing almost all losses of 2022 because of a fundamental spark: Finally, FTX victims stood to recoup some of their losses; recovery was also proceeding as intended.
(SOLUSDT)
Now, all eyes are on Ethereum. This time, what’s driving optimism is not technical candlestick formation or Bitcoin but another fundamental trigger.
Ethereum Price To Outperform Bitcoin in 2024: Here’s Why
It is also why Andrew Kang, an analyst and founder, is bullish on ETH.
In a post on X, Kang said he has been relatively neutral on the ETH/BTC ratio since the Merge, when the network adopted a proof-of-stake consensus mechanism, powering off proof-of-work. However, his focus is shifting.
While I have been apathetic towards ETHBTC since the merge, I believe that market structure is conducive for sustained outperformance into ETF launch
While BTC has strong passive flows, there is no rush for large allocations and so likely grinds up slowly. ETH on the other hand…
— Andrew Kang (@Rewkang) June 6, 2024
He is strongly convinced that the ETH market structure is primed for gains leading up to the United States SEC green-lighting the launch of spot Ethereum ETFs.
There are reasons supportive of this outlook.
Kang said BTC will likely underperform Ethereum because, though it has received strong inflows via spot ETFs, the absence of large allocations is a problem. For this reason, the Bitcoin uptrend will continue, but the leg up will be slow.
Ethereum, on the other hand, enjoys a confluence of positive factors.
All eyes are on the launch of spot Ethereum ETFs, a major catalyst that could attract new investors and drive prices higher.
The market could receive crucial information regarding the launch date or the S-1 filing (a registration document) for spot ETH ETFs any day now.
Already, the regulator has approved all 194-b filings, and the S-1 filing awaits. Usually, registration documents take months to approve.
Even so, considering how accelerated the process ahead of the 194-b filing approval, some speculate that the United States SEC could greenlight them this month.
DISCOVER: How to Buy Ethereum in June 2024 – Beginners Guide
Will ETH Bulls Fill The Technical Gap Between $4,000 and All-Time Highs?
Currently, the ETHUSDT chart shows that the coin is moving horizontally with clear caps at $3,700 and $3,900.
If bulls are to take over, there must be a decisive close above $3,900 and preferably $4,100.
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Beyond $4,100, a clear technical gap exists to $4,900, the all-time highs printed in 2021.
The odds of traders pumping prices higher (and faster) like they did with Bitcoin could fuel momentum.
With this possibility, Kang believes skilled traders can capitalize on the momentum by structuring profitable trades based on the ETH/BTC ratio and the ETH/USD price movement.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
