• Momentum in the cryptocurrency market becomes positive as the chances of Ethereum spot ETF approval rise to 75%.
• As the deadline for approving the ETH ETF draws closer, Ethereum Classic, Pepe, Floki, and other DeFi tokens may see an increase in value.
• The US SEC has until May 23 to decide on the Bitwise and VanEck ETH ETFs.

After Bloomberg analyst Eric Balchunas said that the US Securities and Exchange Commission (SEC) would be “doing a 180” on its Ether spot Exchange-Traded Fund (ETF) ruling, the price of Ethereum (ETH) shot up on Monday. Balchunas and colleague James Seyffart have since increased the probability of an ETF being approved from 25% to 75%.

Ethereum spot ETF journey

• The US SEC may be expediting the approval process as seen by its quick progress in approving spot ether ETFs, including requests for amended filings.

• Analysts have raised the possibility of the US SEC allowing spot Ethereum ETFs from 25% to 75%, a huge rise in likelihood.

• The price of Ethereum has therefore increased by more than 20% since Monday.

• On Wednesday, the notional open interest in Ether-linked futures hit a record $14.05 billion, indicating investor optimism regarding the SEC’s approval of spot ether ETFs.

James Seyffart, a Bloomberg analyst, states that the US SEC must decide the Ethereum spot ETFs from Bitwise and VanEck by May 23.

ETH-based altcoins that could rally

The significant increase in altcoins associated with Bitcoin following the adoption of the Bitcoin spot ETF is not surprising. Tokens with a strong Ether connection may also benefit from the ETF acceptance trend. The top altcoins listed below have the potential to experience a big increase in value in the days before the Ether spot ETF is approved.

Ethereum Classic (ETC): Choosing this option makes sense. ETC is a significant altcoin from ETH’s past, much as Bitcoin Cash and Bitcoin SV.

Memes based on Ethereum: The two ERC20 meme coins Pepe (PEPE) and Floki (FLOKI) are comparable to Ethereum’s main meme coins. These tokens have begun to exhibit sensitivity and correlation with developments based on ETH. When combined with the meme coin craze story, these two cryptocurrencies should see a sharp increase in demand.

DeFi tokens: While there are several tokens in the Decentralised Finance (DeFi) space, we may focus on the DEX tokens SushiSwap (SUSHI) and Uniswap (UNI). Protocol-based tokens like Lido DAO (LDO), which have clear remarks about some institutions choosing not to bet their ETH despite the approval chances rising from 25% to 75% in the last week, are unlikely to ride the ETF wave.

Let’s examine the price, possible accumulation, and take-profit levels of Ethereum Classic.

Ethereum Classic price projection

The price of Ethereum Classic experienced a daily candlestick increase of 17% following the encouraging news about the Ether spot ETF on Monday. The chart below illustrates how this upswing forced ETC to break through the descending trend line, but it encountered resistance near the $33.24 daily resistance level, which roughly corresponds with the high volume node in the volume profile.

The volume profile indicator, as its name implies, keeps track of the volume traded over a given time at various price levels. High-volume nodes are locations with high trading activity that act as a level of support or resistance for the price. Conversely, low-volume nodes are areas where very little trading volume occurred, making them a level to watch for future pullbacks and retracements.

Investors could anticipate a brief wave of profit-taking to drive the altcoin lower and create a base between the $29.87 and $28.57 levels in the future. Sidelined purchasers who missed the first entry can purchase ETC in this accumulating zone.

Investors can anticipate a breakout to the upside as a result of the range tightening as ETC consolidates between $28.57 and approximately $30. On this occasion, nevertheless, the price of Ethereum Classic will break over the downward trend line and reach the $33.24 daily barrier level. From $29.87, this would be an 11% gain.

The price of Ethereum Classic might break $33.24 and retest the $36.14 barrier in a very bullish scenario, increasing the overall gain to 20%.

Conversely, the bears would be in charge if the price of Ethereum Classic was unable to maintain above the daily support level of $28.57. This move would refute the bullish thesis and drive ETC lower by another 5%, tagging the volume profile’s contract point at $27.20. In this scenario, a sweep of $25 would ideally represent a solid accumulation zone and gather the sell-side liquidity.