Crypto analyst Michaёl van de Poppe analyzed the recent sharp decline in altcoin prices, stating that he expects a reversal in the upcoming weeks.
What Happened: Van de Poppe attributes the significant altcoin crash to a combination of factors, including market events and regulatory uncertainties. He emphasizes the critical role of the Ethereum ETH/USD ETF, which initially boosted Ethereum’s price by 20% to $3,800 after the approval of the 19b-4 files.
However, uncertainty over the approval of the S-1 files required by the SEC for listing has since caused Ethereum’s price to stagnate and altcoins to experience heavy corrections.
The analyst added, “The likelihood of these approvals is close to 100%, it’s just a matter of timing,” highlighting potential summer approvals predicted by SEC Chairman Gary Gensler.
Despite positive CPI and PPI data favoring risk assets like cryptocurrencies, Federal Reserve Chairman Jerome Powell‘s hawkish tone led to a less favorable market reaction. “Crypto needs QE and rate cuts, as a climate where risk can be taken is ideal for the investors within the crypto industry to keep on investing in altcoins.”
Also Read: Five Critical Ethereum, Solana Altcoin Trends To Know
Why It Matters: Van De Poppe highlighted that the approval of the spot Ethereum ETF will “signal that Ethereum is a commodity and that the rest of the ecosystem is likely going to be classified as a commodity as well.” He also adds that the event could be a ‘Sell the Rumor, Buy the News’ type of event for the entire market.
Van de Poppe expects a market reversal within the next one to two weeks, driven by more clarity on the Ethereum ETF approvals and a potential easing in the dollar’s strength. “It seems very unlikely that we’re going to continue having such a downward momentum in the crypto markets and rather are reversing back up in the next weeks,” he concludes, optimistic about a rebound.
The trader’s analysis suggests that traders and investors should stay agile, closely monitoring these developments to capitalize on emerging opportunities.
What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Altcoin Season On The Horizon? Analysts Point To Potential Early Peak
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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