Key Points
- The total crypto market cap has fallen by over 3%, with Bitcoin price dropping to around $62,800.
- Ethereum network activity is increasing as investors shift their attention towards altcoins.
The total cryptocurrency market capitalization has suffered a 3% dip in the past 24 hours, settling at approximately $2.4 trillion as of Monday, June 24th, during the early European session.
This bearish sentiment in the crypto market has been spurred by the recent decline in spot Bitcoin ETF demand. As a result, Bitcoin closed last week trading around a significant support level of approximately $63k.
Bitcoin and Altcoin Market
Bitcoin has further declined by 3% in the last 24 hours, now trading around $62,800. This has led to a very bearish outlook for the altcoin market, especially Ethereum (ETH), due to fears of potential regulatory issues with Solana (SOL).
Adding to this uncertainty are concerns over monetary policies in the United States amidst ongoing geopolitical tension between the G7 nations and the BRICS movement.
Increasing Ethereum Network Activity
As Bitcoin’s price signals more short-term pain, more investors are shifting their focus to the altcoin market, particularly Ethereum. This shift is driven by the significant adoption of Ethereum’s web3 protocols by institutional investors.
BlackRock Inc. and Fidelity Investments have allocated funds for their respective spot Ether ETFs in anticipation of the expected listing.
Speculation on Ethereum’s price action has increased significantly despite the ongoing crypto market correction. In addition, Ethereum’s price against the US dollar is expected to reach a new all-time high, similar to Bitcoin’s performance following the approval and listing of spot BTC ETFs earlier this year.
According to on-chain data analysis provided by Santiment, the Ethereum network registered more than 617k active addresses in the past week, the highest in the last three months. Interestingly, the Ethereum CME Futures Open Interest (OI) has gradually risen in the past few months, indicating significant demand from institutional investors.
The crypto market is expected to remain in a correction phase for the coming months until the buyers regain control. Notably, if Bitcoin’s price drops further towards $60k, the altcoin industry is expected to lose between 15-20 percent.
According to a popular crypto analyst known as Ash Crypto, the crypto industry will consolidate in the next 6-9 months before kickstarting the next mega altseason.
Midterm Ether Price Targets
Like the rest of the crypto industry, Ethereum’s price is in a macro bull run, which began late last year fueled by increased adoption by institutional investors. According to a popular crypto analyst known as Captain Faibik, Ethereum’s price in the 8-hour timeframe has been forming a falling wedge pattern that is often followed by a bullish breakout.
As a result, the crypto analyst believes Ether’s price could drop towards $3,300 before rebounding beyond $4k.
