Ethereum ETF Following their approval, crypto investors began directing their capital into ETH and other altcoins hosted on the leading smart contract network.
Meanwhile Cardano Rival Proof-of-Stake (PoS) networks such as (ADA) and Solana (SOL) have fallen amid recent market turmoil. Rapid inflow of funds into Ethereum ETFs threatens to put downward pressure on ADA price movement.
Looking at the chart above, ADA price is down 13.64% from the weekly timeframe high of $0.51 recorded on Tuesday, May 21. Meanwhile, Ethereum price continued its upward trend. After a 25% weekly gain, it managed to hold above the $3,700 support.
A similar trend of negative divergence between ADA and ETH price action has also been observed in the Solana markets, another competing Proof of Stake network struggling for traction while Ethereum attracts investors’ focus.
This shows that crypto investors prefer ETH and other Ethereum-hosted assets such as PEPE. PEPE has entered the top 20 crypto assets by market cap, recording two all-time highs in 2 consecutive weeks.
Within 5 months post-launch, Bitcoin ETFs attracted over $58 billion in BTC assets. As investors prepare to pour billions of dollars into Ethereum ETFs over the next few weeks, ADA price and other rival PoS networks may struggle to break out of the current downtrend.
ADA Price Projection: Bulls Move to Defend $0.45 Support
Cardano’s price is currently hovering around $0.46 and has declined rapidly from its weekly time frame high of $0.51. However, after the 13% drop in the last 3 days, on-chain data trends show that Cardano bulls have taken action and prevented a drop below $0.45.
IntoTheBlock’s Order Books chart below tracks the number of active ADA buy/sell orders currently listed on 13 leading crypto exchanges, including Binance and Coinbase.
Cardano (ADA) Price Projection As seen above, Cardano bulls placed orders to purchase 225 million ADA at an average price of $0.46. Meanwhile, the bears only put 207 million ADA up for sale around current prices.
This suggests that ADA bears may be showing signs of fatigue after a 3-day selling spree. With the bulls now dominating the markets with a much higher buy wall, ADA price is likely to hold above the $0.45 support in the near term.
If the support buying wall collapses, ADA price could drop towards the next psychological support cluster towards $0.40.
However, broader crypto- With the prevailing bullish sentiment surrounding its markets and increasing buy orders, Cardano’s price will likely avoid another double-digit decline but consolidate in the $0.45 to $0.48 channel in the coming days.
Source : The Crypto Basic
