Rally Triggered by Ethereum ETF News
The price of PEPE coin has started rallying following news of a potential Ethereum ETF approval by the end of summer. Strong buy signals have emerged, suggesting a potential increase of over 63% in PEPE's value. Over the weekend, PEPE received a significant boost after SEC Chair Gary Gensler hinted at the likely approval of spot Ethereum ETF S-1s by the end of the summer. On Monday, during European business hours, PEPE was priced around $0.0000118, marking a 1.4% increase over the previous 24 hours. This renewed interest has given PEPE bulls an opportunity to push the price toward its previous all-time high.
Breakout Potential and Technical Analysis
PEPE experienced a breakout from an ascending triangle pattern on May 21, establishing a new all-time high (ATH). However, profit-taking by investors led to a price retracement, bringing it down to $0.00001057. After nearly a month of downward movement, PEPE has reached a critical resistance-turned-support level, a structure that typically provides strong price support.
Currently, PEPE is in a falling wedge pattern, a bullish market structure. The current price level coincides with the 0.786 Fibonacci retracement level, which generally offers robust support for a price rebound. The retracement to this level is part of a breakout test for the three-month ascending triangle that PEPE previously exited.
If PEPE breaks out to the upside of the falling wedge, it may surge back to its previous ATH. Considering the 0.27 Fibonacci extension level, PEPE could rise 63% from its current price, reaching a new ATH of $0.00001948. Conversely, the $0.00001057 level is expected to provide strong support.
Future Outlook for PEPE
Historically, PEPE's price has closely followed Ethereum's trends, and this instance is no exception. According to FOX Business journalist Eleanor Terret, SEC Chair Gary Gensler has indicated that spot ETH ETF S-1s are likely to be approved over the summer.
The bullish sentiment among Ethereum investors has extended to PEPE. Data from on-chain analysis firm Santiment reveals that PEPE holders are at an all-time high, with a notable reduction in the number of whale investors holding $100,000 to $1,000,000 worth of PEPE. This redistribution of supply among smaller investors is a positive sign, as projects dominated by whale investors tend to face liquidity challenges when whales exit.
Conclusion
The anticipation of an Ethereum ETF approval has created a bullish atmosphere for ERC20 meme coins, with PEPE leading the charge. As Ethereum buy fever kicks in due to SEC Chair Gary Gensler's recent statements, PEPE's price may see significant long-term growth. This period could be a critical juncture for PEPE, potentially driving it to new record highs.
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