In the midst of the BTC ETF application uproar, Michael van de Poppe, a well-known crypto analyst, notified the crypto community that Ethereum is approaching the low of 2022 and speculated that it is likely to take liquidity there. The crypto analyst further mentioned that if the BTC ETF is approved, a liquidation candle may develop on the ETH/BTC chart, followed by a rotation into Ethereum combined with a bullish weekly divergence.
Observing the past price action momentum, van de Poppe observed that Ethereum performed very well in the first quarter of every year. He also stated that the bullish divergence signals are being imprinted on the one-day and three-day timeframe charts. Finally, he also predicted that ETH ETF would also be the next “hot topic” in the coming months.
According to CoinMarketCap, Ethereum is priced at $2,274.22 after facing a 0.46% increase in one day. However, in the seven-day time period, the altcoin faced a fall of 5%, placing it in the red region of the chart. It seems that ETH failed to rise above its weekly opening market price of $2,394, and its market cap is valued at $273,329,214,265.
ETH/USD 4-hour chart (Source: TradingView)
Looking at the 4-hour chart, ETH’s positive candlesticks would break through the upper bands during its slight surge; however, the altcoin leader, simultaneously, would also fall as part of the price correction procedure. It seems that ETH was trading in between the $2,425.78 and $2,139.03 trading areas. As per van de Poppe’s analysis, there may be a chance that the candlestick would fall below the support line. It is expected that ETH could also once again rise after the liquidation period.
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