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- Analyst Michaël van de Poppe predicts Ethereum (ETH) could outperform Bitcoin (BTC) in Q1 2024, mainly due to the potential approval of an Ethereum spot ETF.
- Ethereum’s current price is $2,425, with key support at $2,368, but it faces resistance at $2,440, and profit-taking by large investors may influence its price.
Ethereum (ETH) is gearing up for what could be an impressive first quarter in 2024, with prominent cryptocurrency analyst Michaël van de Poppe expressing optimism about the digital asset’s prospects in a tweet on X. Van de Poppe, the founder of MN Trading, believes that Ethereum may emerge as one of the top-performing cryptocurrencies early in the year. His confidence in ETH’s performance is rooted in factors beyond its intrinsic value.
My Top 5 #Altcoins for Q1 2024!
It's always an exciting topic, especially when the markets are heating up, and people eagerly await to jump into the altcoin markets.
Watch the entire video here:https://t.co/Lp3kSvWpxb
But, what is my top 5? Let's discuss it!
My top 5 ⬇️…
— Michaël van de Poppe (@CryptoMichNL) January 1, 2024
Ethereum ETF Filings Raise Expectations
Rather than focusing simply on Ethereum’s fundamentals, van de Poppe emphasizes the importance of Exchange-Traded Fund (ETF) filings, including Bitcoin (BTC). According to him, the prospect of an Ethereum spot ETF being approved might significantly impact the cryptocurrency’s price.
Van de Poppe’s thesis centers on the idea that Ethereum is poised to outperform Bitcoin soon, prompting a strategic allocation towards ETH. He believes that authorizing a Bitcoin ETF will pave the way for an Ethereum ETF, increasing interest in the second-largest cryptocurrency.
While the chances for an Ethereum ETF are encouraging, it is worth noting that the U.S. Securities and Exchange Commission (SEC) has pushed out its decision on the Ethereum ETF until May. Despite the delay, many industry observers remain optimistic that a judgment in favor of Bitcoin ETFs will be made in January, perhaps creating a precedent for Ethereum’s ETF ambitions.
Ethereum’s Price and Market Analysis
As of the most recent data, Ethereum (ETH) is valued at $2,425, kicking off the year on a bullish note. The daily chart indicates that buyers have been able to capitalize on the exhaustion of sellers at the $2,272 price level.
However, Ethereum’s price currently resides within a crucial range. Data from the crypto intelligence tracker IntoTheBlock highlights the demand zone for Ethereum between $2,368 and $2,373. A drop below this critical area could trigger a further decline in Ethereum’s price, potentially leading it to a range between $2,010 and $2,082, given the absence of significant barriers.
Conversely, if Ethereum’s price experiences an upward rally, it will encounter resistance around the $2,440 mark. Notably, there is substantial accumulation between $2,373 and $2,440, with 903,110 ETH addresses holding a total of 4.73 million Ether.
Examining investor behavior and profit-taking trends is critical for determining the potential impact on the price of Ethereum. Investors with large wallets, also known as whales, appear to be profiting. Increases in the Network indicate this Realized Profit/Loss (NRPL) measure, which tracks profits made by Ethereum holders and whale transactions for $100,000 or more. Such profit-taking by big holders tends to impose selling pressure on the asset, causing prices to fall.
Another critical metric to monitor is trading volume, which reflects on-chain activity. Recent data from Santiment reveals a decline in Ethereum’s trading volume between January 10 and 22. This decline in volume has occurred in conjunction with a decrease in ETH’s price. The dwindling volume and reduced activity on the Ethereum network lend credence to the possibility of a short-term correction in the asset’s price.
