According to prominent crypto market analyst Michaël van de Poppe, Ethereum is anticipated to reach new all-time highs. As the approval of spot Ether ETFs in the United States nears, Ethereum may outperform Bitcoin and hit fresh peaks.
Ethereum’s Potential Breakout
Van de Poppe, founder and CEO of MNTrading, suggests that ETH/USD will likely surge past its previous record of $4,900, set in late 2021. Currently trading around $3,850, Ethereum’s price could benefit significantly from the upcoming Ether ETF launch. This development is expected to drive strong price action, similar to the response seen with Bitcoin ETFs.
ETH/USD 1-week chart. Source: TradingView
Altcoin Market Dynamics
The anticipated approval of Ether ETFs is seen as a catalyst for Ethereum’s price. Crypto traders predict that Bitcoin’s dominance in the market, which peaked at 58%, will decrease, allowing altcoins like Ethereum more room to grow. Van de Poppe highlighted that altcoin valuations are currently low compared to Bitcoin, suggesting significant upside potential.
Bitcoin ETF Milestone
In a notable shift within the crypto market, BlackRock’s IBIT has become the largest Bitcoin ETF, surpassing the Grayscale Bitcoin Trust (GBTC) in BTC holdings. As of May 28, IBIT held 288,670 BTC, overtaking GBTC’s 287,450 BTC. This transition marks a significant moment, as GBTC has been losing assets under management since its conversion to a spot ETF in January. Initially holding nearly 620,000 BTC, GBTC’s assets have declined by 53%.
U.S. spot Bitcoin ETF flows (screenshot). Source: Farside
Market Reactions and Future Outlook
Market observers had anticipated the “flipping” of BlackRock’s IBIT over GBTC. Crypto commentator WhalePanda noted the significance of this event, also mentioning the recent resignation of Grayscale CEO Michael Sonnenshein. Meanwhile, interest in Bitcoin ETFs has grown, with ten consecutive days of positive inflows, reflecting growing investor confidence in these products.
U.S. spot Bitcoin ETF holdings (screenshot). Source: Apollo
As the Ether ETF launch countdown continues, the crypto market is poised for potential shifts, with Ethereum positioned to lead the charge towards new all-time highs.
