Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Read more: Ethereum continues hinting at rally following reduced long liquidations
Ethereum witnessed a surge in activities on Wednesday after key events. Here are the top market movers for the number one altcoin:
czsamsunsb.eth made 121.65 $ETH in just 2 hours after $EZETH(Renzo Restaked ETH) depegged!
— Lookonchain (@lookonchain) April 24, 2024
He spent 4,099 $ETH to buy 4,221 $EZETH successfully, making 121.65 $ETH!https://t.co/niluIilTRi pic.twitter.com/hnPWt0DjZD
Also read: Ethereum shows signs of a potential rally as suspected Justin Sun wallet buys heavily
I’m now fully recharged from spot btc ETF approval cycle…
— Nate Geraci (@NateGeraci) April 24, 2024
Time for spot eth ETF.
We have broken structure in Grayscale’s ETHE, suboptimal eth futures-based ETFs, etc.
You can buy eth on publicly-traded COIN & HOOD, paying hefty fees.
No reason for spot eth ETF not to exist.
Ethereum suffered a pullback after briefly breaking past the $3,279 resistance of April 15. The dip is likely a wider market movement as other top cryptocurrencies like Bitcoin, Solana and XRP also shared in the decrease.
The recent decline seems to have cast a shadow of doubt on a potential rally that ETH's price movement has been hinting at. This also shows strong resistance at the upper level of the $2,852 and $3,300 range.
Read more: Ethereum resumes consolidation after brief dip, buyback yield exceeds that of major S&P 500 companies
ETH/USDT 4-hour chart
A potential upswing above this range could see ETH do a quick run to break past the $3,406 resistance, confirming its rally. As previously stated, the largest altcoin would need increased trading volume and bullish strength to break above the range.
The SEC's decision on a spot ETH ETF and Bitcoin's price movement will play crucial roles in determining the direction of ETH's price in the coming weeks.
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.