- As the market buzzes with news of the Ethereum ETF, ETH-based memecoins exhibit only slight gains.
- Despite some predicting a bullish future for Ethereum, Andrew Kang forecasts a potential price dip.
- A well-known figure in the crypto space shared a notable sentiment that the market has peaked due to the Ethereum ETF.
Despite excitement surrounding the Ethereum ETF, expectations are tempered as ETH-based memecoins show modest performance and analysts suggest cautious optimism.
Impact on Ethereum’s price
Current analysis shows Ethereum experiencing a decrease of 1.15%, evidenced by red candles on its daily chart. However, contrasting data from IntoTheBlock highlights a more nuanced picture.
IntoTheBlock reports that, despite the price decline, bulls are outnumbering bears with a 7-day average of 107 bulls versus 95 bears, indicating that buying pressure surpasses selling pressure at this point.
Impact on Ethereum-based memecoins
Contrary to predictions, the impending ETH ETF approval did not significantly boost the memecoin sector. While Solana memecoins soared by as much as 14% and Base blockchain memecoins increased by 7.6%, ETH-based memecoins saw only marginal improvements.
COINOTAG’s detailed analysis of Dogwifhat (WIF) on Solana, Brett (BRETT) on the Base blockchain, and Shiba Inu (SHIB) on Ethereum reveals the following: CoinGecko data shows WIF up by 17.1%, BRETT by 12.4%, and SHIB by a mere 0.5%.
This divergence highlights that positive market sentiment for Solana and Base memecoins did not translate equally to Ethereum-based memecoins post the ETH ETF approval news.
However, endorsement from prominent figures like Anomander, Founder of Legion Ventures, keeps the focus on Ethereum.
“The crypto market seems to have peaked with the Ethereum ETF approval. The blame perhaps lies with low-tier celebrities launching their memecoins.”
Similarly, crypto analyst Michaël van de Poppe remarked,
“Bitcoin’s dominance is at 58%. This suggests that Ethereum might attract more attention in the future, particularly because of the Ethereum ETF.”
Ethereum ETF launch, not a good sign?
Nonetheless, not everyone views the ETH ETF’s impact positively.
Andrew Kang from Mechanism Capital, in a recent post, speculated that the rollout of spot Ethereum ETFs might drive ETH’s price down to $2,400. Further analysis indicates that although there is growth potential in ETH futures, the current disinterest from experienced traders raises concerns about the ETH ETFs’ near-term performance.
“BTC ETFs opened pathways for many new investors to allocate bitcoin in their portfolios. The effect of ETH ETFs is less straightforward.”
Thus, these insights suggest tempered optimism around ETH ETFs compared to BTC ETFs, potentially leading to modest fluctuations in Ethereum’s price.
Conclusion
In summary, while Ethereum’s ETF approval is a significant development, its impact on ETH-based memecoins and overall market sentiment seems mixed. Analysts recommend cautious optimism, with eyes on future performance trends and market reactions to the ETF launch.
