6 Reasons Why Coinbase ( $COIN) Will Thrive From Ethereum ETF News
The post 6 Reasons Why Coinbase ( $COIN) Will Thrive From Ethereum ETF News appeared first on Coinpedia Fintech News
The recent surge in cryptocurrency markets has breathed new life into Coinbase stock (COIN), suggesting significant potential gains if a recent breakout is confirmed. After a remarkable 8.47% surge on Monday, COIN opened even higher on Tuesday. However, the thrill was short-lived as selling pressure and a Bitcoin price pullback caused a 2.08% dip in COIN’s value. Despite this loss, COIN sentiment remains strong due to Ethereum ETF approval rumors.
However, one analyst explains how ETH ETF approval would boost COIN to new highs.
Analyst Insights on Ethereum ETF’s Impact on COIN
In his series of X posts, crypto analyst Snow elaborates on the potential impact of an ETH ETF approval on Coinbase. According to Snow, ETH represents 15-25% of Coinbase’s trading volume and revenues, with an average Q1 price of approximately $2920. He anticipates that an ETF approval could lead to a surge in both Ethereum and Bitcoin volumes, potentially bolstering Coinbase’s Blockchain Rewards revenues, which totaled $151M in Q1.
Moving ahead, Snow suggests that an ETF approval could bring some legal concerns for Coinbase with the SEC and stimulate demand for its custodial services, considering the ETF’s potential assets under management (AUM).
Lastly, Snow predicts that a rise in Ethereum’s value could drive users and capital towards Coinbase’s ecosystem, including its stablecoin USDC. Not only that, this anticipated influx of users and capital could further boost Coinbase’s transaction volumes and revenues.
Technically Coinbase Stocks are on a Breakout
Meanwhile, Coinbase stock broke out a downward trendline, indicating a potential shift in momentum. However, this breakout is yet to be confirmed as the stock lacks strong upward movement. Hence, investors should keep an eye on the $239 level, which may pose a significant challenge for further gains. If the breakout is confirmed, it could signal a highly bullish trend, potentially driving the stock price toward $300.
On the other hand, if the current levels are corrected, the $207 support level might provide some stability. Investors should closely monitor all these technical indicators to determine Coinbase stock’s future direction.
Despite its positive outlook, Coinbase stock’s fate depends on market dynamics and ETH ETF approval speculation.
