Finally, the spot Ethereum ETFs debuted on July 23 after a long-awaited period and numerous delays. However, ETH, the native cryptocurrency of the Ethereum blockchain, is not the only one in the spotlight.
Altcoins, some of which have their fundamentals linked to the blockchain and share a strong correlation with it, could benefit from the development. Here are the top three altcoins that historical trends show could gain from the ETH ETFs.
Thanks to Ethereum, Uniswap (UNI) Is Prepared to Climb
Uniswap is the largest decentralized exchange for trading cryptocurrency tokens via liquidity pools on Ethereum. Because of this connection, UNI, its native token, strongly correlates with ETH.
BeInCrypto confirms this after assessing data on the correlation coefficient provided by Macroaxis. As such, it is one of the altcoins that could gain from the spot Ethereum ETF launch.
Currently, UNI trades at $7.57. Its 21.31% decrease since the start of the month suggests that it could have provided a “buy the dip” opportunity.
Apart from that, crypto whales seem to be giving credence to the bullish potential, and they have recently accumulated UNI in droves. In addition, the Awesome Oscillator (AO) is flashing green histogram bars, suggesting that the downward momentum could soon begin heading in the upward direction.
If validated alongside continued large accumulation, UNI’s price could rise above $8 in the short term. Should bulls continue to keep bears out of the way, the value of the token may rise as high as $9.40 or $10.03.
Read More: How to Invest in Ethereum ETFs?
However, Uniswap’s bullish bias may not materialize if ETH’s price underperforms. If this happens, the token’s price may slip to $6.76.
Pepe (PEPE) on the Brink of Another Rally After Recent Breakout
This altcoins list will be incomplete without a notable mention of Pepe (PEPE), the top meme coin built on Ethereum.
PEPE recently broke out of a descending channel pattern. This pattern indicates a downtrend, with specific resistance and support levels at the upper trendline and lower trendline, respectively.
The breakout result saw the token rise to $0.000013 earlier before it retraced to $0.000012. While the altcoin continues to swing sideways, the Accumulation/Distribution (A/D) line reveals that buying pressure is slowly improving.
Also, the Relative Strength Index (RSI) remains above the neutral line. The RSI indicates momentum, and when it is above 50.00, it means bullish momentum is present, which is the case with PEPE.
Should ETH’s price rise toward $4,000, PEPE will likely be one of the altcoins that will make a stronger move. If this happens, the token’s price may retest $0.000015 for a start.
Ethereum Name Service (ENS) to Hit $34 After Bitwise Disclosure?
Earlier, we reported that ENS showed signs of what could be possible with the approval of the spot Ethereum ETFs. Moments later, the cryptocurrency’s price reached our prediction of around $28.35.
However, it does not end there. On Tuesday, July 23, Bitwise Invest, one of the ETF issuers, announced that it will become the first ETF to add ENS subnames for each address.
According to its post on X, using the Ethereum Name Service will allow transparency in verifying its holdings.
“This is the sort of transparency only crypto makes possible. It allows anyone to verify ETHW’s holdings and flows directly on the blockchain.” The post mentioned.
This development, and more, makes ENS one of the altcoins that could benefit from the Ethereum ETF launch. The chart below shows how ENS has been ascending and hitting support levels at higher prices, which has been vital to the recent increase.
Read More: 7 Hot Meme Coins and Altcoins that Are Trending in 2024
Furthermore, the Moving Average Convergence Divergence (MACD) is positive, reflecting a slightly bullish momentum for the token. If sustained, ENS price could break the $30.00 resistance and reach $34.32.
However, if the token fails to surpass the overhead resistance, the price could decrease to $26.61.
Meanwhile, some analysts have expressed skepticism about the quick impact of the ETFs on altcoin prices. One of them is Konstantin Shulga, CEO and co-founder of Finery Markets.
According to him, the spot Ethereum ETFs will get a good level of inflows. However, he notes that it could take some months before the broader market reacts to it.
“The full impact of ETF approvals on the market may not be fully realized until six to nine months later, as it typically takes this time for the products to be fully integrated into financial players’ product portfolios and gain widespread adoption,” Shulga told BeInCrypto
Disclaimer
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