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Will ETH See a Bitcoin-Like Rally?

Will ETH See a Bitcoin-Like Rally?

As the launch of spot Ethereum ETFs nears the finish line, several predictions have emerged. Some are bearish on the price of ETH, while others are betting on a parabolic rally.

Among the numerous predictions, one that caught BeInCrypto’s attention was regarding ETH’s potential to mimic the performance of Bitcoin (BTC).

Is a 200% Increase Likely as Ethereum Whales Shift Positions?

On July 9, a pseudonymous analyst at X Follis wrote that the Ethereum ETF could cause the altcoin’s price to perform similarly to BTC’s performance between 2023 and 2024. During that period, BTC bounced from $26,000 and then reached a new all-time high of $73,750.

“Ethereum ETF is about to launch and ETH chart looks like BTC before it surged 200% last year.” Follis Shared.

At press time, ETH is trading at $3,108. According to the trader, the price of ETH will reach $9,324 in less than a year or so.

While this is not impossible, there will need to be an increase in demand for the forecast to come true.

However, Spot On Chain revealed that a whale withdrew $50.30 million worth of ETH in the early hours of July 10. The on-chain data provider notes that this is the first significant accumulation since speculation around the impact of Ethereum’s ETH began.

Read More: How to Invest in Ethereum ETFs

Ethereum Whale Accumulation. Source: Point on Chain

This accumulation contradicts a whale selling $12 million worth of the altcoin a few days ago. Furthermore, data from Glassnode suggests that Ethereum whales have broken away from the distribution and are now buying the crypto in large quantities.

The number of addresses holding $1 million or more worth of ETH provides evidence of this action. On July 7, this metric was 14,217. However, as of the time of writing, the figure has risen to 14,823, reflecting increasing demand for the crypto and optimism regarding a spot Ethereum ETF approval.

Ethereum Addresses with $1 Million Balance Source: Glass knot

ETH Price Prediction: Almost Similar to BTC, But Not the Same

Compared to BTC, the price of ETH has undergone a more significant correction. From May 28 to July 9, the price of Ethereum fell by 24.65%.

On the other hand, Bitcoin experienced a 19.43 percent drop, which shows that the number one cryptocurrency in terms of market value continues to outperform ETH despite bullish signals.

Ethereum and Bitcoin Price Performance. Source: TradeView

But historically, relatively deeper corrections present an opportunity for higher prices. Interestingly, the daily chart of ETH/USD shows a double bottom formation to this effect.

A double bottom pattern occurs when two lows form near a similar rectangular price level, indicating a possible bullish reversal.

Before the Ethereum ETF saga, the last time the cryptocurrency formed a similar pattern was in January 2024. Three months later, the price of ETH increased by 81.94% to reach $4,067.

If something similar happens, ETH’s price will trade around $5,625 before the end of September. However, the short-term outlook for the token remains bullish as long as the bulls defend ETH at $2,934.

Read More: Ethereum ETF Explained: What It Is and How It Works

Ethereum Daily Price Analysis. Source: TradeView

If that turns out to be the case, ETH could enter the resistance zone at $3,555. Also, if the Ethereum ETF is launched in a week or two, the altcoin’s price could attempt to surpass $3,758.

However, if ETH faces a pessimistic market with almost no positive sentiment after the financial product launch, the price could fall

Disclaimer

In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.