The rising tension in the Middle East has caused bears to tighten their grip on the crypto market. While most top crypto coins have witnessed price drops over the last week, there have been positive signs for Solana and Ethereum.
Bloomberg analysts have increased the odds of a spot Solana ETF approval to 91%. On the other hand, whales have continued to buy Ethereum as the price drops further. Now, what are the possible implications of these actions on the SOL and ETH prices?
Chances for Solana ETF Approval Rise To 91% Despite Bearish Market
As bearish pressure rose in the market, Solana (SOL) experienced a sharp price decline. The Solana price plunged from $160 to test support levels near $145. As a result, SOL is now trading below the critical $155 support level and the 100-hourly simple moving average.
Although Solana’s price is still grappling with bears, there is some reprieve in regulatory developments. The Solana ETF application from VanEck has been listed on the Depository Trust and Clearing Corporation (DTCC) website. This is under the active and pre-launch funds as ticker VSOL.
The DTCC indicates that the fund is not redeemable or creatable until a regulatory approval is given. Bloomberg analysts James Seyffart and Eric Balchunas say a SEC approval could come in a month. Per odds on Polymarket, the SOL ETFs approval stands at 91%.
Several asset managers, such as CoinShares and Bitwise, have joined the Solana ETF competition. To amend their S-1s, the SEC has been speaking to ETF issuers. This implies that SOL ETF may receive the green light from the regulator.
In reaction to the news, the popular crypto figure Ted Pillows predicted that the price of Solana could rally to $1,000 upon approval.
Whales Keep On Acquiring Ethereum (ETH) As Prices Drop
Like Solana, the price of Ethereum has seen a massive fall in the last week. On the 1W timeframe, the Ethereum price is down by more than 10%, leading to a return to the $2,500 price range.
As per a recent post from Glassnode, there has been a massive increase in the acquisition of Ethereum (ETH) from whales. The on-chain analytics firm reported that every day for a week, whale accumulation exceeded 800K $ETH.
On June 12, Ethereum whales bought more than 871K $ETH, the highest daily net inflow year-to-date. Ted Pillows also reported that a single whale has bought over $29 million worth of ETH in the past four days. As a result of the massive acquisition, whale addresses holding between 1,000 and 10,000 ETH now have increased to 14.3 million ETH tokens.
In addition to the massive fund inflow, the analyst known as Crypto GEMs has spotted a macro bullish flag on the 1W Ethereum price chart. Based on this bullish formation in this timeframe, the crypto analyst believes that the ETH price could target $8,000 in the next breakout.
Final Thoughts
The current market sentiment is bearish, but the movements behind Solana and Ethereum hint that a big move could happen soon. The probability of a Solana ETF launch increasing and ETH whales stacking their wallets shows the long-term prospects of these cryptos.
