Can ETH, OP, SNX Explode on Spot BTC ETF Approval?

Altcoins are feeling the heat amid the spot Bitcoin exchange-traded fund (ETF) approval saga. Following the fake news posted on Tuesday after the Securities and Exchange Commission (SEC) X account was hacked, Bitcoin price briefly rallied above $47,000 leaving out most top altcoins except Ethereum.

Soon after the fake ETF approval news was deleted, BTC dumped to below $45,000. Although Ethereum (ETH) climbed above $2,400, resistance at $2,500 remains untested, not to mention the correction to $2,390 at the time of writing on Wednesday.

Today was the day the ETF was expected to pass, and Bitcoin instead fell below $45,000 to new lows in recent days.
The sharp volatility continues to pull the RV up and the short-term IV has seen a small rally, as we have mentioned several times recently in our data analysis that… pic.twitter.com/MekjaNnyaI

— Greeks.live (@GreeksLive) January 10, 2024

Investors have a lot to deliberate and consider ahead of the spot BTC ETF approval. The aim would be to avoid both bull and bear traps while tapping the desired price movements not only in Bitcoin but also among altcoins like ETH, Optimism (OP), and Synthetics (SNX).

Navigating Ethereum Opportunity Among Top Altcoins

Ethereum price shows signs of another attempt to wiggle its way through resistance at 2,400 before momentum starts to build due to the imminent approval of the ETF.

The largest smart contracts token trades at $2,415 with the uptrend strengthened by a buy signal from the Moving Average Convergence Divergence (MACD) indicator.

Traders may consider buying into ETH as long as the MACD line in blue holds above the signal line in red. Moreover, a four-hour candle close above $2,400 would validate the anticipated breakout above the hurdle at $2,500.

If the crypto market manages to avoid selling the spot BTC ETF news, Ethereum could steady the uptrend towards $3,000 — a move likely to bring in the element of FOMO and an even larger breakout.

Optimism Price Begins New Breakout

Traders capitalized on the dip to $3 following the rejection from the recent Optimism all-time high above $4. The token has shown significant strength since October, rallying from lows of $1.15.

It is this bullish outlook and a sustained uptrend that continues to attract investors to OP, who believe the search for a new ATH is not over.

The MACD indicator supports the bullish thesis, fronting a buy signal on the weekly chart.

Should OP uphold higher support at $3.5, traders would be encouraged to seek more exposure targeting highs above $4. However, it is too early to rule out a potential drawdown to the tested $3 support.

Is Synthetix Ready For The Next Breakout?

Synthetix suffered a minor retracement after unsuccessfully testing the seller congestion at $4.4 coinciding with the upper descending trendline on the weekly chart.

The correction took place in tandem with the general pullback in the market, which saw altcoins cede ground against Bitcoin dominance.

Now that SNX has rebounded from support reinforced by the 200-week Exponential Moving Average (EMA) (in purple) at $3.3, the path with the least resistance could momentarily shift upwards, allowing bulls another opportunity to defeat resistance at $4.4.

Movements above the upper falling trendline could blast SNX towards $10 but delays should be anticipated at key levels such as $7 and $8.5. Failure to make headway above $4.4 could result in an extended sweep in search of liquidity. Support areas like $3, and $2 could come in handy leading to a larger breakout.

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