Approval of the Ethereum ETF sparked the ETH price and may result in skyrocketing Altcoin. Traders suggest that it is also challenging Bitcoin, as after hitting an 18-month high, it is losing market shares.
The approval of the Ethereum ETF failed to boost the market as expected by the traders. At the time of writing, Ethereum and Bitcoin are making a deep correction by trading 3.35% down from yesterday’s trading.
Source: Coinmarketcap
Bulls Left Wanting as Bitcoin and Ether ETFs Fail to Excite
Data collected from coinmarketcap shows Bitcoin trading at $67,309 and Ethereum at $3,687. Both coins didn‘t respond much to the awaited approval of Ethereum ETF news from the United States SEC.
The approval of the ETF is a great achievement for crypto, however, the SEC made a U-turn on their policies to approve it. Even after approval, The ETFs were not ready to trade as analysts suggested that it could take a few more weeks.
In a recent discussion on the latest events, James Seyffart and Eric Balchunas, dedicated ETF analysts at Bloomberg Intelligence, speculated about the possibility of approval by mid-June.
As a result, BTC/USD and ETH/USD failed to make an upward move and instead dropped from their local highs by the daily close.
Daan Crypto witnessed an impact of Bitcoin on the overall crypto market cap and could face significant challenges once the Ethereum ETFs are launched.
“With the recent $ETH rally, we’ve seen #Bitcoin Dominance head back down,” he posted on X.
“This has been in an up trend for about 1.5 years and if anything could reverse trend, it would be ETH leading on the back of an ETF being approved. 52% and 48% are the main levels.”
Other traders also spotted the risk to the uptrend, suggesting it might be a precursor to a full-blown “altseason.”
Bitcoin dominance reached 57% in mid-April, just before its block subsidy halving, marking the highest levels in over two years.
BTC Deep Correction Till $66,000
To check how much of a deep correction BTC can make before investors jump into it, Skew predicted it could touch $66,000. He explained this in an analysis published on May 23.
“Seeing some initial spot demand around $66K – $65K, reaction is key as well to gauge absorption of sellers Spot supply remains around current high $72K – $76K,” he said.
Sked said that the upward trend in the coins is “driven by the exchanges” themselves.
