The recent surge in the Ethereum-based memecoin, PEPE, has captivated the attention of the cryptocurrency community, driven by a remarkable 27% increase that propelled it to a new all-time high within the last 24 hours. This surge has been primarily fueled by the speculative anticipation surrounding the potential approval of spot Ether exchange-traded funds (ETFs) in the United States. As the deadline for the decision draws near, discussions and predictions about the potential impact of such regulatory advancements have intensified, contributing to the buzz surrounding PEPE’s performance.
One notable voice in this conversation is crypto trader Matthew Hyland, who shared his perspective via a May 21 X post, suggesting that “PEPE is probably the best memecoin play for the ETH ETF.” This sentiment underscores the correlation observed by many traders between PEPE’s surge and the anticipated ETF approval. Similarly, the pseudonymous trader known as “Kaleo” highlighted the synchronicity between Ether’s price movements and PEPE’s performance, labeling it as one of the “most obvious hindsight trades out there.”
Amidst the speculation surrounding ETF approval, Ether itself has experienced a significant uptick, with its price rising by 23.28% over the past two days to reach a current value of $3,785. This surge in Ether’s price is driven by renewed optimism regarding the potential approval of spot Ether ETFs by the May 23 deadline, a development that has surprised analysts and energized the crypto industry as a whole.
In tandem with Ether’s rise, Pepe (PEPE) has seen impressive gains, currently trading at $0.00001387, marking a 23.48% increase over the last 24 hours, according to data from CoinMarketCap. This price movement positions PEPE as a standout performer in the memecoin category, garnering attention from investors and traders alike.
Looking ahead, the pseudonymous trader “Plazma” has offered insights into the potential future of PEPE’s market performance, suggesting that the “PEPE price discovery should continue for the next few weeks with some normal breaks for a few days and the usual pullbacks.” This outlook anticipates a potential 2x-3x increase in the coming weeks, further adding to the excitement surrounding PEPE’s trajectory.
Additionally, the surge in open interest (OI) for PEPE, which measures the total value of all outstanding PEPE futures contracts across crypto exchanges, is indicative of growing confidence among traders about their future positions on the cryptocurrency. With the OI rising by 40% to $172.96 million over the past 24 hours, it reflects a bullish sentiment surrounding PEPE’s prospects.
However, it’s essential to acknowledge the potential implications of a price drop in PEPE, as even a 6% decrease could result in the liquidation of $10 million in long positions, underscoring the volatile nature of the cryptocurrency market and the risks associated with trading memecoins like PEPE.
Overall, the remarkable performance of PEPE amidst speculation surrounding Ether ETF approvals underscores broader market dynamics, where regulatory developments can significantly impact cryptocurrency valuations. As the deadline for the SEC’s decision approaches, investors and traders remain keenly focused on how these developments will shape the market landscape, highlighting the interconnectedness of ETF approvals, Ethereum’s valuation, and memecoin performance like PEPE.