Ethereum is on the brink of a significant breakout, showing consolidation within a descending wedge pattern, which is typically a bullish formation. This pattern has persisted since late 2021, with Ethereum consistently testing the upper and lower bounds of the wedge, suggesting a buildup of buying pressure, according to CryptoYoddha, a well-known crypto analyst.
Recent events have added fuel to this potential breakout. Significantly, the approval of an Ethereum-based Exchange-Traded Fund (ETF) has created a wave of optimism among investors. The conceivable influx of institutional money into the market could drive Ether’s value significantly higher, as evidenced by previous instances of ETF approvals impacting Bitcoin’s price.
The chart also supports the rotation from altcoins into Bitcoin. Bitcoin dominance, which measures BTC’s market share relative to other cryptocurrencies, has decreased, raising the possibility of an altcoin season. In the past, a decline in Bitcoin dominance has often preceded substantial gains in altcoins, particularly Ethereum.
The confluence of technical indicators and positive catalysts reaffirms the case for Ether’s imminent breakout. If the descending wedge pattern resolves as expected, Ethereum could surge toward its all-time highs, marking a new chapter in its market trajectory.
Saylor Predicts Ethereum ETF Surge
During a recent “What Bitcoin Did” podcast, MicroStrategy co-founder Michael Saylor discussed the positive impact of Ether exchange-traded funds (ETFs) on institutional adoption. He predicted that mainstream investors might increase their crypto portfolio allocation from 1% to 10%, seeing crypto as a broader asset class. Saylor believes that Bitcoin will dominate this allocation, accounting for up to 70%.
Saylor said that Bitcoin’s position could strengthen as it gains political support from the entire cryptocurrency industry. “They obviously have a lot of political power, a lot of users, and they serve as another line of defense for Bitcoin,” he said.
In a surprising turn of events, Ether ETFs faced several 19b-4s listing requests that were approved earlier this week. This decision was made despite the expectation that the U.S. Securities and Exchange Commission (SEC) would reject the requests due to political stress and legal uncertainty around Ether.
Bloomberg ETF expert James Seyffart estimates that Ethereum ETFs could capture about 25% of the demand seen for Bitcoin ETFs launched in January. However, the actual trading start date for Ether ETFs remains uncertain as the SEC must approve corresponding S-1 registration statements.
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