U.Today - Chief Investment Officer at Moskovski Capital Bitcoin (BTC) analyst Lex Moskovski slams the uber-bullish sentiment of Ethereans excited by the potential approval of the Ether Futures ETF by the U.S. Securities and Exchange Commission.
Ether Futures ETF approval might mark cycle top, analyst says
Analyst Lex Moskovski indicated at least three situations in which big "approval" events resulted in a massive crash for major cryptocurrencies. Markets plummeted after the approval of Bitcoin (BTC) futures contracts listing by the Chicago Mercantile Exchange and after Bitcoin Futures ETF approval in 2021.Also, the painful recession of 2021 followed the listing of Coinbase (NASDAQ:COIN)'s COIN on NASDAQ, the first-ever cryptocurrency IPO. By press time, COIN is changing hands at $75, down 70% from the listing price.
For the majority of altcoins, their listings in the futures section of now-defunct FTX exchange also marked historic highs. Here's why potential approval of Ether-Futures ETF products in the U.S. should not be considered a bullish factor.
Typically, analysts wait for crypto ETF approval and claim that these announcements are able to trigger the much-anticipated rallies of major coins.
For instance, the launch of the first Bitcoin Spot ETF in the U.S. might rewrite trust in crypto as a mature asset class, some researchers say.
Technical analysis sending mixed signals
However, it is still unclear when the SEC would be ready to say the final word on ETFs on Bitcoin (BTC) and Ethereum (ETH). Per the latest documents, verdicts might be delayed until Q1, 2024.At the same time, technical analysis patterns hint at a bright future for the Ethereum (ETH) price in the midterm. A trader and analyst who goes by @IamCryptoWolf shared the "accumulation" pattern Ethereum (ETH) is going through.
The accumulation started in June 2022, below $850, and is therefore lasting for over 14 months. Should this pattern be valid, the road to $4,000 might be open, the analyst suggests.