Ethereum
Ethereum Price Prediction as SEC Approves Ethereum ETFs
Last updated: May 23, 2024 at 7:36 p.m. EDT | 2 minutes of reading
The price of Ethereum (ETH) is trading choppyly Thursday evening, following the news that the US SEC approved Ethereum spot ETFs, a dramatic turnaround that shocked the market which until a week ago, bets that Ethereum ETFs would be rejected this week.
BOOM!! APPROVED! Here it is. The SEC has just approved the spot #Ethereum AND F. What a turn of events. This is really happening.
h/t @PhoenixTrades_ pic.twitter.com/KQ39mDyCbT
–James Seyffart (@JSeyff) May 23, 2024
THE Ethereum Price was last trading around $3,800. This represents a sharp decline from the previous session’s highs near $4,000, but also a sharp rise from the previous session’s lows at $3,520.
Over the week, the price of Ethereum is up 24%. Rumors of an SEC U-turn started on Monday.
In the days that followed, this was followed by a flurry of engagements between ETF issuers and the SEC.
Meanwhile, traders have aggressively driven up the price of Ethereum on bets that ETFs would help the ecosystem grow.
It all came to a head on Thursday when the SEC Approved 8 Ethereum Spot ETFs.
Why Spot Ethereum ETF Approval Matters
Spot Ethereum ETF approvals in the United States will increase the price of Ethereum as institutional investors enter the market.
Traders will remember that Bitcoin hit new record highs after Spot Bitcoin ETF approvals earlier this year.
Well, the price of Ethereum may soon follow suit. Its current highs are around $4,900, up 28% from current levels.
This will bring more liquidity to the Ethereum ecosystem, which should spur more adoption, activity, and development.
Ethereum ETFs are expected to help solidify Ethereum’s status as the king of smart contract-enabled blockchains.
Ethereum Price Prediction – Where Does ETH Go Next?
Confirmation of the approval of Ethereum spot ETFs could lead to some short-term selling pressure.
This would be reminiscent of what happened when spot Bitcoin ETFs were approved earlier this year.
Some traders wait for confirmation of a positive market catalyst before taking profits.
Assuming there is decent demand for Ethereum ETFs when they go live, ETH could soon surpass $4,000.
Uncertainty over Ethereum’s regulatory situation in the United States has prompted many traders to short ETH relative to other cryptos.
It was believed that the SEC had been campaign to list ETH as a security sooner This year.
But now that Ethereum spot ETFs have been approved, that pretty much clears things up. ETH is a digital commodity like Bitcoin.
Many shorts need to be unwound, which could provide a continued tailwind for the market.
And cryptocurrency technicals suggest that since March’s downtrend broke in mid-May and above its 21 and 50DMAs, a retest of March highs near $4,100 is likely.
Once this level is reached, a rapid push towards 2021 highs near $4,900 is likely.
Warning: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose your entire capital.