Ethereum Price Pumps, Capital Rotates Into ETH Beta Coins As Ether ETF Speculation Mounts

ETH/BTC ratio via Binance

Within hours of the US SEC approving the first spot Bitcoin ETF for trading, the Ethereum price exploded to reclaim the $2,600 level, and the ETH/BTC chart now looks set to break out of a 12 month downtrend.

After lagging Bitcoin throughout 2023, this week’s ETH/BTC candle is the largest since July 2022, bouncing back above the 21 weekly moving average.

Ethereum Beta Plays As ETH Price Rises

Many on crypto Twitter – ‘CT’ – now expect attention to move from BTC to ETH in anticipation of an Ether ETF, and for altcoins to also catch up – especially tokens related to Ethereum.

ETH and derivatives are seeing the ‘largest smart money inflows’, according to Nansen analyst Martin Lee.

We’ve listed some of the top traders’ picks for ETH beta coins, cryptos that could benefit the most from the Ethereum price outperforming:

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Optimism

Popular trader Bluntz (formerly known as ‘Smart Contracter’) is watching Layer-2 blockchain on Ethereum, Optimism (OP).

In a follow up tweet the analyst forecasts that $OP could break out above its all-time high as soon as this weekend, after ‘consolidating under ATH resistance’.

Arbitrum

Bluntz and others are also watching Arbitrum (ARB), and popular YouTuber Mayne opened a long position yesterday before the ARB price exploded over $2.20.

Skale

A modular blockchain network designed to bring scalability to Ethereum, @SmokeyHosoda is bullish on Skale (SKL) as a beta play to Ethereum.

He’s confident in a 100% move to the upside if the $0.10 resistance level is broken.

Pepe

Among meme coins, Ethereum-based Pepe recently began to outperform once again with Solana’s Bonk cooling off after its explosive rally.

One of the top crypto analysts Kaleo expects $PEPE to be a high beta play on ETH and eventually hit a ‘multi-billion market cap’ once the ETH/BTC ratio reclaims 0.06 and above.

Low Caps on Ethereum

Low cap ERC-20 meme tokens Meme Kombat and Sponge have also been making headlines, the former for raising close to $7 million at ICO and the latter for exploding over 1000% from its 2023 lows.

During ETF week Sponge was among the top crypto gainers, with meme coins remaining a high beta play to the overall increasing demand for cryptocurrency.

Still with a market cap well under $100 million, analysts like Jacob Bury are expecting further continuation to the upside.

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James Spillane

James began investing in cryptocurrency in 2017 and alongside his own trading journey also now aims to help others better navigate the markets as a crypto analyst, writer and editor. Currently James is helping to expand the library of cryptocurrency educational materials here on the site, as well as its tech related content. Prior to joining Techopedia as an administrator James also wrote news coverage of the iGaming industry and online poker guides at Rakeback.com. Hailing from Bedfordshire in the United Kingdom, James graduated from Imperial College London with a BSc in Physics.