Ethereum
One-time Ethereum ETF approval could push ETH price to $5,000, analysts say
Analysts at crypto trading firm QCP Capital say the unexpected approval of Ethereum spot ETFs could propel the price of ETH to $5,000 “later this year.”
The price of EthereumNative cryptocurrency ETH could target the $4,000 mark as a “natural near-term goal” if the U.S. Securities and Exchange Commission (SECOND) approve Ethereum spot exchange traded funds (AND F).
Ethereum Price in USD | Source: TradingView
In a analytical update On May 21, analysts at the Singapore-based trading firm said the second-largest cryptocurrency by market value could possibly reach $5,000 later this year if the SEC surprises the market with its approval. However, if the financial regulator rejects ETF requests, the market should expect an “ugly return” to $3,000, where ETH has repeatedly demonstrated strong support at the $2,900 level.
“This uncertainty has led to greater volatility, but the best trade may be in spot futures, which are once again yielding over 10%.”
QCP Capital
Following rumors of a potential approval, the price of Ethereum jumped nearly 20%, reaching $3,650 on Tuesday. QCP Capital previously warned that a “resounding lack of interest” in the market combined with the approval of Ethereum spot ETFs could “easily” return ETH to its recent highs. Analysts have warned that an unexpected approval could trigger a short squeeze, pushing ETH to new highs.
However, the SEC can still have a card up your sleeve by introducing a nuanced distinction between Ethereum and staked Ethereum, classifying the latter as a security. According to Alex Thorn, head of research at Galaxy Digital, this strategy would align with the SEC’s ongoing legal battles and investigations, allowing the commission to approve Ethereum ETFs while maintaining its established regulatory position.