Story Highlights
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Top Analyst predicts Ethereum price to surge 92% in the next 16 days.
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Ethereum drops 4.45% to $3,632 post-ETF approval, similar to Bitcoin’s past pattern.
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If $3,700 support fails, next key zone: $3,580 to $3,462, with 3.13 million addresses.
The U.S. Securities and Exchange Commission (SEC) has approved eight spot Ethereum ETFs, sparking speculation and excitement within the crypto community. Drawing parallels to Bitcoin’s past performance, a prominent crypto analyst predicts a 92% surge in Ethereum’s price over the next 16 days from its current level of $3,632.
ETH Price To Surge By 92%
Following the approval, Ethereum’s price has shown both volatility and resilience dropping straight from $3880 to $3632, reflecting a 4.45% decrease in its price. However, the initial Ethereum market response may mirror Bitcoin’s past, with potential short-term drops followed by substantial gains
After the approval of the #BTC ETF on jan.10th it took 16 days and a 21% price drop before a 92% rally.
Give the approval of the #ETH ETF some time#Bitcoin $ETH #crypto #cryptocurrency pic.twitter.com/9dfkuqvMWz
— Michiel de Ruyter (@Crypto_RuyterNL) May 24, 2024
On January 10th, the Bitcoin (BTC) ETF was approved, marking a significant milestone for the cryptocurrency market. However, the immediate aftermath wasn’t an instant surge. Instead, Bitcoin experienced a 21% price drop over the subsequent 16 days.
This initial decline was a precursor to a remarkable 92% rally, showcasing the market’s volatility and eventual growth potential.
Critical Demand Zone: $3,820 – $3,700
Ethereum’s price movements are under scrutiny, especially with the recent Ethereum ETF approval. Crypto analyst Ali Martinez has highlighted critical demand zones based on Input/output of Money Around Price (IOMAP) data, providing valuable insights into potential support levels for Ethereum amid increasing market volatility.
Based on the IOMAP, over 1.81 million addresses bought around 1.66 million $ETH between $3,820 and $3,700. This demand zone could keep #Ethereum’s price at bay amid increasing selling pressure.
But if it fails to hold, the next key area of support is between $3,580 and $3,462,… pic.twitter.com/grSHL4w4Gj
— Ali (@ali_charts) May 24, 2024
Ali Martinez points out that, according to IOMAP data, over 1.81 million addresses purchased approximately 1.66 million ETH in the price range of $3,820 to $3,700. This significant support level, characterized by substantial buying activity, could act as a buffer against sharp declines.
Ethereum Price To Drop, If?
However, Martinez warns that if Ethereum’s price fails to hold above the $3,700 mark, the next crucial area of support lies between $3,580 and $3,462. In this zone, around 3.13 million addresses have acquired over 1.50 million ETH. This secondary support level is pivotal in preventing a more substantial downturn if the price continues to drop.
As of now, Ethereum is trading at $3,632.11, reflecting a 4.42% decline in the last 24 hours. Despite this drop, ETH trading volume has surged by 94%, bringing its market cap to $440 billion.