In this latest update, Crypto Jebb dives deep into the anticipated launch of spot Ethereum ETFs and the rippling effects this move might have on Bitcoin and the broader cryptocurrency market. The CoinSpeech team has distilled the most critical insights from his latest video. You can also find the new video from Crypto Jebb below.
Spot Ethereum ETFs Coming Soon
The news that spot Ethereum ETFs could launch as soon as the 4th of July has created significant buzz in the crypto community. A lawyer associated with one of the prospective issuers confirmed that the approval process is “down to the finishing touches.” Executives from these firms reiterated that only “minor issues” remain in the filings. Sources close to the matter told Reuters that the launch could happen in just a week. “If Reuters is reporting this, it probably is actually what’s going to happen,” Jebb stated, adding confidence to the forecast.
Market Reactions and Predictions
On this news, Bitcoin experienced a brief rally, surging $1,800 in 8 hours, but has since faced resistance at $62,500. This resistance level is key because breaking it would mark a higher high, a critical step for reversing the ongoing downtrend. However, Jebb warns, “The trend is your friend until it ends,” suggesting that Bitcoin’s current movement might be forming a bear flag that could push prices down to around $52,800.
In stark contrast, Ethereum has been on a rally, hitting new higher highs and setting a high of $3,472 as of the morning of the video. “If Ethereum can lead the charge here and break that downtrending level of resistance, it could kick Ethereum into a major uptrend,” Jebb explained. A strong Ethereum trend could even drag Bitcoin along with it.
Short-Term Volatility Expected
Despite the optimism surrounding the Ethereum ETFs, Jebb issues a cautionary note. When the Bitcoin ETF launched back in January, it led to a 12-day, 21% drop for Bitcoin. Similarly, gold experienced a 7% drop over 90 days following the launch of its GLD ETF. History suggests that Ethereum might see a short-term 7 to 14-day crash post-launch. “It is possible, historically speaking, that we’re going to see a drop out the gate on Ethereum,” Jebb noted, adding that this could pull Bitcoin and other altcoins downward as well.
Medium-Term Bullish Outlook
Looking ahead, the medium-term outlook appears bullish. Jebb predicts that, following the initial corrective phase, Ethereum will experience roughly 90 days of significant bullish action, potentially reaching an all-time high of $5,000. “The launch of the Ethereum ETF will be the gateway to all-time high on Bitcoin, Ethereum, and many of your favorite altcoins,” he assured. This event could be a pivotal point, propelling Bitcoin towards $100,000 in the upcoming years due to combined catalysts, including the Bitcoin halving and Bitcoin ETF advancements.