These altcoins could explode as the Ethereum ETF approaches

• Crypto market sentiment turns bullish as Ethereum spot ETF approval chances rise to 75%.
• Ethereum Classic, Pepe, Floki and other DeFi tokens could gain momentum as the ETH ETF approval deadline approaches.
• The deadline set by the US SEC to rule on the VanEck and Bitwise ETH ETFs is May 23.

Ethereum (ETH) price climbed on Monday after Bloomberg analyst Eric Balchunas mentioned that the US Securities and Exchange Commission (SEC) could “do a 180” regarding the Ether Spot Exchange-Traded Fund (ETF) decision. Since then, Balchunas and his colleague James Seyffart have both increased the ETF’s chances of approval from 25% to 75%.

Ethereum Spot ETF Journey

• The US SEC’s accelerated progress in approving ether spot ETFs, including requests for updated filings, reflects a potential acceleration of the approval process.
• The likelihood of the US SEC approving spot Ethereum ETFs has increased significantly, with analysts increasing the likelihood from 25% to 75%.
• As a result, the price of Ethereum has seen a gain of over 20% since Monday.
• Notional open interest in Ether-related futures contracts hit a record $14.05 billion on Wednesday, signaling investors’ hopes of an SEC approval of ether spot ETFs.

Learn more: Ethereum Resumes Rally as Five Potential Issuers Submit Amended ETH ETF Documents

According to Bloomberg analyst James Seyffart, the US SEC’s decision on VanEck and Bitwise Ethereum spot ETFs is expected on May 23.

ETH ETF Deadline

ETH-based altcoins that could rally

It is no surprise that altcoins linked to Bitcoin saw a major rally after the approval of the Bitcoin spot ETF. Likewise, tokens closely tied to Ether could ride the ETF approval wave. Here is a list of top altcoins that could see a significant rally in the days leading up to the approval of the Ether spot ETF.

1. Ethereum Classic (ETC): This is an obvious selection. Like Bitcoin Cash and Bitcoin SV, ETC is an important altcoin from ETH’s past.
2. ETH-based meme coins: Pepe (PEPE) and Floki (FLOKI) are two ERC20 meme coins and are like the flagship meme coins of Ethereum. These tokens began to become sensitive and correlated to ETH-based developments. Coupled with the frenzied narrative of meme coins, these two altcoins will likely see a massive increase in buying pressure.
3. DeFi tokens: The decentralized finance (DeFi) sector hosts a multitude of tokens, but we can limit it to the DEX Uniswap (UNI) and SushiSwap (SUSHI) tokens. Staking protocol-based tokens like Lido DAO (LDO) are unlikely to ride the ETF wave, as there have been clear comments that some institutions have not chosen to stake their ETH despite the odds approval rising from 25% to 75% last week. .

Let’s break down the Ethereum Classic price, potential accumulation, and profit levels.

Ethereum Classic Price Forecast

The Ethereum Classic price saw a 17% daily candlestick following the positive development around the Ether spot ETF on Monday. This rise pushed ETC to cross the downtrend line, as shown in the chart below, but it faced resistance around the daily resistance level of $33.24, which roughly coincides with the node volume profile.

As the name suggests, the Volume Profile indicator tracks the volume traded at different price levels during a specified period. High volume nodes are places where significant volume is traded and serve as a level of support or resistance to the price. On the contrary, low volume nodes are places where virtually no volume has been traded, making them a level to watch for possible retracements and pullbacks.

Looking ahead, investors can expect a wave of short-term profit-taking altcoin down to form a base between $29.87 and $28.57. Marginalized buyers who missed the initial entry can purchase ETCs in this accumulation zone.

As ETC consolidates between $28.57 and around $30, investors can expect the tightening range to result in a breakout higher. This time, however, Ethereum Classic price will decisively cross the downtrend line, reaching the daily resistance level of $33.24. This move would constitute an 11% gain from $29.87.

In a very bullish case, Ethereum Classic price could surpass $33.24 and retest the $36.14 hurdle, bringing the total gain to 20%.

ETC/USDT 12-hour chart

On the other hand, if Ethereum Classic price fails to hold above the daily support level of $28.57, this would indicate that the bears are in control. Such a development would invalidate the bullish thesis and could push ETC down another 5% to mark the volume profile contract point at $27.20. Ideally, a good accumulation zone in this case would be a $25 sweep, which would collect liquidity on the sell side.

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