Finally, the Ethereum spot ETF debuted on July 23rd after a long wait and numerous delays. However, Ethereum, the native cryptocurrency of the Ethereum blockchain, is not the only one receiving attention.
Some altcoins are fundamentally connected to the blockchain and have a close correlation with the blockchain, so they can benefit from its development. Looking at historical trends, the top three altcoins that could benefit from an Ethereum ETF are:
Uniswap (UNI) is ready to rise thanks to Ethereum
Uniswap is the largest decentralized exchange trading cryptocurrency tokens through Ethereum's liquidity pool. Because of this connection, the native token UNI has a close correlation with Ethereum.
BeInCrypto evaluates and confirms the correlation coefficient data provided by MacroAxis. Therefore, it is one of the altcoins that could benefit from the launch of the Ethereum spot ETF.
UNI is currently trading at $7.57. The 21.31% decline since the beginning of the month suggests that it may have presented a “buy the dip” opportunity.
Aside from that, cryptocurrency whales appear to be giving credence to the bullish potential and have been accumulating large amounts of UNI recently. Additionally, the Awesome Oscillator (AO) is flashing green histogram bars, suggesting that bearish momentum may soon turn upward.
If proven along with continued large-scale acquisition, the price of UNI could rise above $8 in the short term. If the bulls continue to hold off the bears, the token value could rise to $9.40 or $10.03.
Read more: How to Invest in Ethereum ETF?
However, if the Ethereum price is underperforming, Uniswap’s bullish bias may not be realized. In this case, the token price could fall to $6.76.
Pepe on the verge of another rally after recent breakout
This list of altcoins would be incomplete without mentioning PEPE, the Ethereum-based meme coin.
Pepe recently broke out of a descending channel pattern. This pattern indicates a downtrend with specific resistance and support levels located on the upper and lower trend lines respectively.
The breakout caused the token to rise to $0.000013 before falling back to $0.000012. While altcoins continue to move sideways, the Accumulation/Dispersion (A/D) line shows that buying momentum is slowly improving.
Additionally, the Relative Strength Index (RSI) remains above the neutral line. RSI indicates momentum, and anything above 50.00 means bullish momentum exists, which is the case for PEPE.
If the Ethereum price rises towards $4,000, PEPE will be one of the altcoins to see stronger moves. In this case, the token price may first retest $0.000015.
Will Ethereum Name Service (ENS) reach $34 after bit-by-bit release?
We previouslyreported that the approval of the Ethereum spot ETF provides a glimpse into the potential of the Ethereum Name Service (ENS ). After a while, the cryptocurrency price reached our expected price of $28.35.
But it doesn't end here. On Tuesday, July 23, Bitwise Invest, one of the ETF issuers, announced that it will be the first ETF to add an ENS sub-name to each address.
Bitwise Invest explained that using the Ethereum name service allows you to transparently check your holdings.
“This is the transparency that only cryptocurrency makes possible. Anyone can check the holdings and flow of ETHW directly on the blockchain.” This is what was mentioned in the post.
These developments and more make ENS one of the altcoins that could benefit from the launch of an Ethereum ETF. The chart below shows how ENS rose and reached support levels at higher prices, which played a significant role in its recent rally.
Read more: 7 Popular Memes Coins and Altcoins Trending in 2024
Additionally, the moving average convergence divergence (MACD) is positive, reflecting some upward momentum for the token. If this trend continues, ENS price may break the resistance of $30.00 and reach $34.32.
However, if the token fails to overcome the overhead resistance, the price may fall to $26.61.
Meanwhile, some analysts have expressed skepticism about ETFs' quick impact on altcoin prices. One of them is Konstantin Shulga, CEO and co-founder of Finery Market.
According to him , there will be significant inflow into the Ethereum spot ETF . But he notes it could take months for the broader market to react.
“The full impact of an ETF approval on the market can only be fully realized six to nine months later,” Shulga told BeInCrypto. “This is typically the time it takes for the product to be fully integrated into the product portfolio of financial players and widely adopted. “Because you get caught,” he said.
