Analyst Michaël van de Poppe Predicts Ethereum is Undervalued and Primed for Significant Growth – With a Catch

August 8, 2024

A well-known analyst and trader, Michaël van de Poppe, has highlighted a potential catalyst that could spark a significant rally in Ethereum (ETH). Van de Poppe, who commands a substantial following on the social media platform X, points to the inflows into spot ETH exchange-traded funds (ETFs) surpassing the creation of new supply as a key bullish factor.

Van de Poppe emphasized the imbalance between supply and demand by stating, “The ETH supply was created in 2024: $160 million. The net inflow in ETH ETF in the past two days: $150 million. The demand is exceeding the supply.” This disparity suggests a favorable environment for Ethereum’s price to surge.

However, the analyst cautioned that the extent of ETH’s rally hinges on the sustainability of ETF inflows. He expressed his optimism, stating, “I think Ethereum is super undervalued and ready for a big run if this inflow sustains.”

Van de Poppe further projected that Ethereum could potentially reach $4,000 in the near future if it maintains $2,600 as a support level on the weekly chart. Reflecting on recent market movements, he remarked, “The second scenario took place for ETH, which was way deeper than we expected. However, I think that, if Ethereum closes above $2,600, we’ve seen the actual low and are ready for a big surge upwards. The inflows are super positive.”

At the time of reporting, Ethereum was trading at $2,496, marking a 3.7% increase in the last 24 hours. Additionally, van de Poppe suggested that the recent market correction may have established a bottom, hinting at potential rallies for projects like Optimism (OP), an Ethereum scaling solution.

Van de Poppe’s observations extended to Aave (AAVE), a money market protocol that he anticipates could experience a significant breakout after consolidating around the $100 mark. He noted, “One of the most promising charts in crypto is AAVE. DeFi (decentralized finance) is looking awesome for a big run.”

Meanwhile, Optimism was trading at $1.32, reflecting a 5.4% increase in the past 24 hours. Aave, on the other hand, was valued at $96.78, showing a decline of over 5% within the same timeframe. Van de Poppe’s insights shed light on the potential developments within the cryptocurrency market, hinting at possible price movements for Ethereum, Optimism, and Aave in the coming weeks.