Ethereum's Value Skyrockets Amid Expectations of U.S. ETF Approval
Summary:
In the past three days, Ether's (ETH) value has risen by 30% to hit a two-month peak. This leap is due to expectations of an Ethereum exchange-traded fund (ETF) approval in the U.S and traders' speculation about a potential ETH price increase post-approval. As anticipation builds around the Securities and Exchange Commission's (SEC) verdict on the Ethereum ETF, analysts are noting an uptick in Ethereum’s market dominance. Despite the bullish sentiment, caution is advised as potential market volatility awaits after the ETF approval decision.
In the past three days, the price of Ether (ETH) has soared by 30%, achieving a two-month peak of $3,947 on May 23. The upswing in Ether is powered by two main contributors: the expectation of the approval of spot Ethereum exchange-traded fund (ETF) in the U.S. and speculations among traders that ETH prices will increase post-approval. The Ethereum ETF verdict from the Securities and Exchange Commission (SEC) is eagerly awaited by the crypto realm.
Eric Balchunas, a Bloomberg Senior ETF analyst, predicts that the SEC will reveal its judgement at 4:00 pm ET on May 23, basing this on past records such as the spot Bitcoin ETFs approval, announced at 15:45 ET on Jan. 10. On the same day, a bipartisan group of U.S. lawmakers implored SEC chairman Gary Gensler to endorse the spot Ethereum ETFs. A letter Balchunas distributed underscores attempts by House legislators to persuade the regulator to adopt the same “principles” it did while approving spot Bitcoin ETFs earlier this year.
This progression comes in the wake of the endorsement of the FIT21 crypto bill by the U.S. House of Representatives on May 22, which saw 208 Republicans and 71 Democrats supporting it and 136 opposing it. Over the past few days, exchanges and issuers updated their 19b-4 forms in anticipation of the SEC's imminent decision.
Traders seem geared up for the potential initiation of a spot ETH ETF, with Ether's price approaching the $4,000 mark on May 23. Market analysts CryptoBusy noted a rise in Ethereum's market weight. “Investors and traders have started buying $ETH, resulting in a surge in price, with the market expecting an approval today. Even though the news is not yet official, the anticipation is causing the price to inflate!”
If Ether's upward trend continues, its dominance could rise further, potentially bringing about the much-awaited altcoin season. Daan Crypto Trades, a well-known trader, believes ETH price instability will continue given the losses experienced by leveraged traders about "$1B in Open Interest in just the last hour."
However, the trader cautioned his followers to remain alert, as the spot ETH ETF verdict will dictate the movements in ETH markets on May 23. From a technical viewpoint, the relative strength index (RSI) value at 71 indicates the sway bulls currently possess over the ETH price. Essential levels to observe on the rise are the psychological threshold at $4,000 and the March 11 peak at $4,091.
On the flip side, the RSI outlines overbought situations, indicating that the go-ahead for spot ETH ETFs could be a 'sell-the-news moment,’ as bears could think about capitalizing on the rally to $4,000. Note: This article does not include investment advice or recommendations. Every investment and trading step involves risks, and readers should carry out their own exploration before making a decision.
Published At
5/23/2024 7:39:31 PM
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