These altcoins could explode as the Ethereum ETF approaches

• Crypto Market Sentiment Turns Bullish as Ethereum Spot ETF Approval Odds Increase to 75%.
• Ethereum Classic, Pepe, Floki and other DeFi tokens could gain momentum as the ETH ETF approval deadline approaches.
• The US SEC’s deadline to decide on the VanEck and Bitwise ETH ETFs is May 23.

The price of Ethereum (ETH) skyrocketed on Monday after Bloomberg analyst Eric Balchunas mentioned that the U.S. Securities and Exchange Commission (SEC) may “do a 180” on the Exchange-Traded Fund (ETF) spot Ether decision. Since then, Balchunas and colleague James Seyffart have both increased the ETF’s odds of approval from 25% to 75%.

Ethereum spot ETF journey

• The US SEC’s accelerated progress in approving spot ether ETFs, including requests for updated filings, reflects a potential acceleration of the approval process.
• The likelihood of the US SEC approving Ethereum spot ETFs has increased significantly, with analysts increasing the likelihood from 25% to 75%.
• As a result, the price of Ethereum has seen a gain of more than 20% since Monday.
• Notional open interest in Ether futures hit a record $14.05 billion on Wednesday, signaling investor hopes for SEC approval of spot Ether ETFs.

To know more: Ethereum resumes its rally as five potential issuers submit amended ETH ETF filings

According to Bloomberg analyst James Seyffart, the US SEC’s decision on the VanEck and Bitwise Ethereum spot ETFs is expected on May 23.

ETH ETF Expiration

ETH-based altcoins that could rally

It is no surprise that altcoins are related to Bitcoin saw a major rally following the approval of the Bitcoin spot ETF. Likewise, tokens closely related to Ether could ride the wave of ETF approval. Here is a list of major altcoins that could see a significant rally in the days leading up to Ether spot ETF approval.

1. Ethereum Classic (ETC): This is a very simple selection. Like Bitcoin Cash and Bitcoin SV, ETC is a major altcoin from ETH’s past.
2. ETH based meme coins: Pepe (PEPE) and Floki (FLOKI) are two ERC20 meme coins and are like the flagship meme coins of Ethereum. These tokens have started to become sensitive and related to ETH-based developments. Along with the meme coin frenzy narrative, these two altcoins will likely see a huge increase in buying pressure.
3. DeFi Tokens: The decentralized finance (DeFi) sector is home to a multitude of tokens, but we can narrow it down to the Uniswap (UNI) and SushiSwap (SUSHI) DEX tokens. Staking protocol-based tokens like Lido DAO (LDO) are unlikely to ride the ETF wave as there have been clear comments about some institutions not choosing to stake their ETH despite the chances of approval increasing 25% to 75% in the last week.

Let’s analyze the price of Ethereum Classic, the potential accumulation and take profit levels.

Ethereum Classic Price Predictions

Ethereum Classic price saw a 17% daily candle following the positive development surrounding the Ether spot ETF on Monday. This rally pushed ETC to breach the descending trend line as shown in the chart below, but faced resistance around the $33.24 daily resistance level, which roughly coincides with the high volume node of the trading profile. volume.

As the name suggests, the volume profile indicator tracks the volume traded at different price levels over a specified period. High volume nodes are places where large volume is traded and act as a support or resistance level against the price. Low-volume nodes, in contrast, are places where almost no volume has been traded, making them a level to watch for potential retracements and pullbacks.

In the future, investors can expect a wave of short-term profit taking that will put an end to the market altcoins until forming a base between the $29.87 and $28.57 levels. Sidelined buyers who missed the initial entry can purchase ETCs in this accumulation zone.

As the ETC consolidates between $28.57 and around $30, investors can expect the narrowing range to result in an upside breakout. This time, however, Ethereum Classic price will decisively break the descending trend line, reaching the daily resistance level of $33.24. This move would constitute an 11% gain from $29.87.

In a highly bullish case, Ethereum Classic price could break above $33.24 and test the $36.14 hurdle again, bringing the total gain to 20%.

12 hour ETC/USDT chart

On the other hand, if Ethereum The classic price failing to hold above the daily support level of $28.57 would signal that the bears are in control. Such a development would invalidate the bullish thesis and could push the ETC down a further 5% to mark the volume profile contract point at $27.20. Ideally, a good accumulation zone in this case would be a move to $25, which would pick up sell-side liquidity.

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