PEPE is now consolidating above a key support level as it prepares for a potential rally.
- PEPE’s prices will surge when Spot Ethereum ETFs start trading Metrics pointed to a balanced market with a slight bullish tilt
Spot Ethereum ETFs have been finally approved in the United States. This significant milestone is expected to reshape institutional interest in the world’s largest altcoin, while also potentially affecting the market values of memecoins like PEPE.
Here, a look at Bitcoin’s example is worth looking at. Within weeks of a Spot Bitcoin ETF being approved, the cryptocurrency climbed to its latest ATH on the charts. Not only that, but its surge affected other cryptos in the market too, altcoins and memecoins.
In just 30 days, Spot bitcoin exchange-traded funds (ETFs) saw daily net inflows of about $125 million per day. Those kind of numbers were a positive precursor to the figures that followed in the months ahead for Bitcoin.
PEPE was a beneficiary too. Investors rejoiced as PEPE surged by 86.56% in just 7 days of Spot BTC ETF’s approval. Something similar can be expected as Spot Ethereum ETFs start trading, perhaps more so since the altcoin is highly correlated to the likes of PEPE.
That’s not all either as at press time, PEPE was ranging out after the breakout from its bullish flag on the charts. This part of consolidation usually indicates bullish continuation may be on the horizon.
$0.0000015 seemed to be acting as a strong support level. PEPE has rejected this level several times, indicating that the level may set the stage for a potential bullish rally.
Here, it’s worth noting that PEPE has a seasonal trend, a consolidation phase, followed by a subsequent impressive breakout and price rally. Given that the price recently broke out of a bullish flag, a significant price rally may be on the cards.
Source: PEPE/USD, TradingView
PEPE whales taking a breather
AMBCrypto’s analysis of IntoTheBlock data revealed a drop in the number of large transactions from 179 to 129 over the past week. In fact, the same fell by 27.93% in the last 24 hours alone.
Sometimes, such a significant drop in the number of big market players may precede significant price movement on the charts.
Source: IntoTheBlock
Additionally, AMBCrypto assessed the liquidity level data from Coinglass. It indicated a balanced market with bulls having a slight leverage.
Simply put, investors are now anticipating a hike in the memecoin’s price in the short-term, sentiment that strengthens the likelihood of a potential rally.
Source: Coinglass
Taken together, the present market dynamics in play are positive for PEPE and other memecoins that are so highly correlated with ETH. When Spot ETH ETFs start trading, they can expect to rally in the near future.
Only time will tell how long that rally lasts though.
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