Ethereum
6 Reasons Why Coinbase ($COIN) Will Thrive With Ethereum ETF News
The recent surge in cryptocurrency markets has breathed new life into Coinbase (COIN) shares, suggesting significant potential gains if a recent breakout is confirmed. After a remarkable 8.47% rise on Monday, COIN opened even higher on Tuesday. However, the enthusiasm was short-lived, as selling pressure and the decline in Bitcoin’s price caused a 2.08% drop in COIN’s value. Despite this loss, COIN sentiment remains strong due to rumors of Ethereum ETF approval.
However, one analyst explains how ETH ETF Approval would propel COIN to new heights.
Analyst Views on the Impact of Ethereum ETF on COIN
In his series of posts X, crypto analyst Snow develops on the potential impact of approving an ETH ETF on Coinbase. According to Snow, ETH represents 15-25% of Coinbase’s trading volume and revenue, with an average price in the first quarter of around $2,920. He predicts that an ETF approval could lead to increased volumes of Ethereum and Bitcoin, potentially bolstering Coinbase’s Blockchain Rewards revenue, which totaled $151 million in the first quarter.
Going forward, Snow suggests an ETF approval could land Coinbase in legal trouble with the SEC and boost demand for its custody services, given the ETF’s potential assets under management (AUM). .
Finally, Snow predicts that an increase in Ethereum’s value could attract users and capital to Coinbase’s ecosystem, including its stablecoin USDC. Additionally, this anticipated influx of users and capital could further increase Coinbase’s trading volumes and revenue.
Technically, Coinbase shares are on a breakthrough
Meanwhile, Coinbase stock broke a downward trendline, indicating a potential change in momentum. However, this breakout has not yet been confirmed as the stock lacks a strong upward movement. Therefore, investors should keep an eye on the $239 level, which could pose a significant challenge for further gains. If the breakout is confirmed, it could signal a very bullish trend, potentially pushing the stock price towards $300.
On the other hand, if current levels correct, the $207 support level could provide some stability. Investors should closely monitor all of these technical indicators to determine the future direction of Coinbase stock.
Despite its positive outlook, the fate of Coinbase stock depends on market dynamics and speculation over ETH ETF approval.
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