Fintech
The legendary crypto analyst outlines the 5 key events of May
As the cryptocurrency market shows no signs of recovery and is trending ever lower, crypto analyst Michael van de Pop has outlined a likely scenario for the cryptocurrency market, focusing on the price trajectory of Ethereum and other digital assets. Despite the initial optimism, many cryptocurrencies have retraced their gains, challenging investors’ buy-and-hold strategy.
Ethereum faces a continuous correction
According to van de Pop’s analysis, the price of Ethereum (ETH) could see a further decline, potentially reaching the $2,500-$2,750 range. This projection highlights current market sentiment, which has been influenced by macroeconomic factors and regulatory uncertainties.
Ethereum (ETH) has slipped 4% in the past 24 hours, falling below the Again $2,910. This decline continues a week-long trend, with ETH recently losing around 6% of its value.
Ethereum Spot ETF Delay
The approval process for an Ethereum spot exchange-traded fund (ETF) is experiencing delays in May. Unlike Bitcoin ETFs, the Securities and Exchange Commission (SEC) seems less confident about approving Ethereum ETFs.
Experts believe the chances of approval this month are slim, especially after the SEC postponed a decision on the Invesco Galaxy Ethereum ETF to July 5, 2024. The SEC wants more time to review and gather feedback before making a final decision.
Meanwhile, van de Pop’s prediction suggests that this delay could lead to further pressure on Ethereum’s price in the coming weeks.
Ethereum’s weakness against Bitcoin
That of Ethereum performance compared to Bitcoin (ETH/BTC) has shown sustained weakness, evident in recent days and in long-term trends. Van de Poppe predicts further lows for ETH/BTC, highlighting the ongoing challenges for Ethereum versus Bitcoin.
Altcoins rise in the third quarter
Despite the delays, van de Pop remains optimistic about a potential market rotation following the ETF delay. As suggested by the analyst, this rotation could be favorable altcoins in the third quarter of 2024, signaling opportunities for growth and diversification within the cryptocurrency space.
Bitcoin enters sideways
Meanwhile, van de Pop’s analysis points to a period of consolidation for Bitcoin (BTC), with the expectation of remaining within a defined price range for the next 4-6 months.
Following historical models, Bitcoin often enters in a sideways direction post-halving market phase, which signals a period of accumulation. This trend, observed in previous halvings, pushes investors to accumulate Bitcoin during price stability, preparing for future price increases.
While short-term corrections persist, analysts like Michael van de Poppe predict long-term bullish trajectories, underscoring the cyclical nature of cryptocurrency market trends.