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ETH Betas Rally With Ethereum ETF Nod — Who Is Taking the Lead?

Last Updated May 24, 2024 9:04 AM
Valdrin Tahiri
Last Updated May 24, 2024 9:04 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • The ENS price attempts to break out from an over two-year resistance area.
  • PEPE reached a new all-time high on May 23 but could be nearing a top.
  • ETHFI broke out from a descending resistance but trades below horizontal resistance.

The Ethereum price started a notable increase on May 20, spurred by optimism surrounding the possibility approval of an ETH ETF, which was granted on May 23. The rally has led to an increase of 20% so far.

More interestingly, other Ethereum  related projects known as ETH “Betas” have enjoyed similar surges. Below, we will take a look at those that have increased the most and have the best-looking structures for continued gains.

Which ETH Betas Are Performing the Best?

The analysis is conducted on the performance of ETH projects since May 20, when ETH started to move upward. The ETH price is shown in white. Out of the ETH betas, ENS is the clear leader with an increase of 57%, followed by PEPE and ETHFI at 43% and 36%, respectively.

The other two projects that are outperforming Ethereum are PENDLE and LDO, with increases of 28% and 25%, respectively.

Ethereum Betas Increase
Daily Trading Chart | Credit: TradingView

On the other side of the spectrum, Ethereum Layer-2s are underperforming. ARB is at 13%, MATIC at 1% while OP has in fact fallen by 3%. Liquid staking solution RPL, which is Lido DAOs main competitor has performed worse than its counterpart at 12%. Synthetic dollar protocol ENA has also increased by 12%.

Below, we will analyze the price movement of the three biggest gainers, ENS, PEPE and ETHFI to determine if they will continue moving upward.

Will ENS Break Out From its Long-Term Resistance?

The 2-day time frame ENS price chart shows the price trades below the $24 horizontal resistance area since the start of 2022. While ENS moved above it in May 2022 and March 2024 (red circle), it failed to sustain the increase. Rather, it fell below it shortly afterward.

Nevertheless, ENS began another upward movement this week and attempts to break out again.

The wave count predicts it will be successful. It shows that starting in May, ENS has completed a five-wave upward movement and an A-B-C corrective structure.

ENS Price Movement
ENS/USDT 2-Day Chart | Credit: TradingView

If the count is accurate, ENS has started another five-wave upward movement. Giving both increases the same ratio will lead to a high of $34, finally causing a lasting breakout from the $24 area.

Despite the bullish ENS price prediction, falling below the wave one high (red) at $17.54 will invalidate the count. Then, ENS could fall toward the next support at $10.

PEPE Price Reaches New All-Time High

The PEPE price has been one of the best performers in 2024, increasing by 1,500%. The increase culminated with a new all-time high price of $0.0000157 on May 22.

The wave count suggests the rally could be ending soon. This is because wave five has extended and reached a potential area for the top, between $0.0000150 and $0.0000174.

The 1.61 external Fibonacci retracement of wave four (black) created the lower limit of this target. The upper limit is created by giving wave five the same length as waves one and three combined. The sub-wave count is in black.

PEPE Price Wave Count
PEPE/USDT Daily Chart | Credit: TradingView

So, it is possible the PEPE rally is coming to an end and that a notable correction will follow soon. On the other hand, if PEPE breaks out above $0.0000175, the next target will be at $0.0000254, giving wave five 1.61 times the length of waves one and three.

ETHFI Struggles with Resistance

The ETHFI price has traded above the $3.50 horizontal area nearly since its launch. On May 17, it finally bounced above it and started an upward movement, which led to a high of $5.19 on May 23. The increase caused a breakout from a descending resistance trend line.

Despite the breakout, ETHFI still trades below the 0.382 Fibonacci retracement resistance level at $5.26. This is also a horizontal resistance area. So, it is unclear if the trend is bullish yet.

ETHFI Price Breakout
ETHFI/USDT Daily Chart | Credit: TradingView

If ETHFI breaks out, the next resistance will be created by the 0.618 Fibonacci level at $6.55. The breakout will mark a 40% increase. Conversely, a rejection from the area can trigger a 25% drop back to the $3.50 support.

ETH Betas to Benefit from Ethereum ETF

Out of the three ETH Betas analyzed, ENS has the most bullish outlook due to the impending breakout. PEPE has been the best performer in 2024 so far, but the wave count suggests a top could be near. Unlike the other two, it is not clear yet if the ETHFI price trend is bullish.

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