On Monday, the price of Ether (ETH) surged as traders speculated that the SEC might greenlight Ethereum ETFs this week, spurred by rumors of a significant shift in the SEC’s stance. ETH saw gains exceeding 10%, reaching around $3,400.
Bloomberg’s ETF analysts, Eric Balchunas and James Seyffart, raised their approval likelihood to 75% following murmurs suggesting the SEC might make a complete reversal. Deadlines for deciding on ETF applications loom, with potential approvals, rejections, or extensions expected by Thursday, possibly paving the way for approval this week.
Prior to the recent buzz about a potential SEC pivot, many anticipated rejections for Ethereum ETFs. Reports suggest the SEC has been exploring categorizing Ether as a security in recent months.
Will SEC Approve Ethereum ETFs?
Balchunas and Seyffart, renowned Bloomberg analysts, boast a commendable track record in predicting crypto ETF approvals. They notably advocated for spot Bitcoin ETF approvals in 2023, despite prevailing market skepticism at the time.
Currently, a significant recalibration is unfolding in the Ether market. Investors are markedly increasing their stakes in anticipation of SEC approval for spot Ethereum ETFs, consequently driving prices upward. Why this surge?
The green light for Ethereum ETFs would provide institutional investors with streamlined access to Ether exposure, mirroring the impact seen with Bitcoin. This anticipated development is poised to substantially bolster the long-term trajectory of Ether prices.
Where Next for ETH?
The recent surge in Ether’s price has broken free from a downward trend channel that persisted since mid-March. ETH has not only surpassed significant moving averages but also found robust support at its 2024 uptrend.
Technical analysis indicates a bullish near-term outlook for Ether. The next target on the upside is the April highs surpassing $3,700. Subsequently, a probable near-term challenge lies in testing the March highs above $4,000.
If Ether ETFs receive approval, it would coincide with a period of improving market sentiment. Recent releases of US jobs and CPI inflation data for April have assuaged concerns about the economy overheating, fostering hopes that the Fed can still implement multiple interest rate cuts this year.
Moreover, inflows into Spot Bitcoin ETFs surged last week, with over 500 asset managers disclosing ETF exposure through 13F filings.
Traders were previously discussing the possibility of Bitcoin retesting its all-time highs, and this conversation is expected to intensify, especially with the anticipated approval of Ethereum ETFs this week.
The upcoming Nvidia earnings report and the release of FOMC minutes could serve as additional factors propelling further upward movement.
Before Monday’s surge, the Ether price had been trailing behind Bitcoin.
A sustained enhancement in market sentiment, coupled with the introduction of Ethereum ETFs, might provide the momentum needed to propel the Ether price back towards its record highs, hovering near $4,900.
