Ethereum failed to carry Monday’s bullish momentum, falling 5% to trade at $3,025 on Tuesday.
The largest altcoin is now down 15% over the past week and could continue its bearish trajectory in the days to come.
ETH showed strength on Monday after the Hong Kong Securities and Futures Commission approved spot Ethereum ETFs. While Hong Kong and China are technically separate entities, analysts are viewing this move as China’s growing acceptance of the crypto industry.
However, the news failed to spur any long-term bull rally and Ethereum adopted its bearish trajectory once again.
In other crypto news, a new Bitcoin Minetrix crypto presale raised $13 million and is set for a highly-anticipated launch shortly after its final stage ends April 25th.
Bloomberg Analysts Reveal Why Hong Kong Ethereum ETFs Aren’t A Big Deal
The approval of spot Ethereum ETFs in Hong Kong sparked a temporary bull run on Ethereum. Some bulls were even hoping that the move would push the US and Securities Commission to green spot ETH ETFs as well.
The reason behind the optimism is largely due to Matrixport – a Singapore-based crypto firm – stating that the ETFs could be on the Southbound Connect portal. Southbound Connect allows mainland Chinese investors to invest in eligible shares listed in Hong Kong.
However, Bloomberg ETF analyst Eric Balchunas reveals that this most likely would not be the case.
Balchunas also warns investors to manage their expectations, revealing that the bullish impact of the Hong Kong ETFs would not be anything close to their US counterparts.
As another Bloomberg analyst James Seyffart highlights, there is an order of magnitude difference between the sizes of the US and Hong Kong ETF markets. While the former boasts $9 trillion worth of assets, the latter is only about ~$50 billion.
Even the Mainland China ETFs are worth ~$325 billion.
Yes, also @EthereanMaximus: There are more assets in US Listed #Bitcoin ETFs than there are assets in EVERY single ETF listed in Hong Kong. Yes it could be a big deal down the line. But its a whole different animal.
— James Seyffart (@JSeyff) April 12, 2024
The US ETF Market is almost $9 Trillion in assets — that's…
Why Ethereum Could Fall To $2400?
Popular analyst Ali Martinez believes that if the selling pressure continues, the Ethereum price could plummet to $2400, potentially even $2000.
Using Into The Block’s “Global In/Out of the Money” tool, Marinez reveals that Ethereum does not have any strong support levels to back it, until the $2000 – $2400 support zone. In this range, 9.3 million addresses have purchased over 52.83 million ETH.
If the downturn persists, keep an eye on the critical support zone for #Ethereum between $2,000 and $2,430. In this range, around 9.37 million addresses hold nearly 53 million $ETH. pic.twitter.com/pJBygzggOv
— Ali (@ali_charts) April 16, 2024
The average price of purchase in the zone is $2,218 which could be tested if the macroeconomic and geopolitical outlook does not improve soon.
Bitcoin Minetrix Crypto Presale Nears Completion After Raising $13 Million
The weakness in Bitcoin and large-cap altcoins has forced investors to look in the direction of low-cap tokens and crypto presales.
A new crypto mining token Bitcoin Minetrix has quickly raised $13 million in its presale, especially with the hype surrounding Bitcoin Halving reaching a fever pitch.
Minetrix is building a decentralized stake-to-mine dashboard that makes Bitcoin mining rewards accessible to small-scale retail investors. Users simply need to buy and stake $BTCMTX tokens, which eliminates the technical expertise and capital investment required in the traditional crypto mining space.
Bitcoin Minetrix prioritizes decentralization and transparency – features often lacking in early cloud mining projects. This reduces the risk of scams and rug pulls.
As the crypto mining industry becomes increasingly profitable deep into the bull market, the value of $BTCMTX could surge.
It’s not without reason that smart-money traders such as Jacob Bury and Michael Wrubel are bullish on the project, with Bury mentioning the possibility of 10x returns.
Just nine days remain until the end of the Bitcoin Minetrix presale, with the token claim and DEX launch taking place shortly after April 25th.
