The chance of an Ethereum (ETH) Spot ETF being approved has surged from 25% to 75%, as indicated by senior Bloomberg analyst Eric Balchunas. Reports suggest that political pressure may be influencing the stance of the U.S. Securities and Exchange Commission (SEC). This news has led to an 18% increase in Ether’s (ETH) price, reaching $3,684 within 24 hours.
Nate Geraci, co-founder of the ETF Institute and president of the ETF Store, shared insights on the SEC’s potential approval process. Geraci explained that the regulator could approve exchange rule changes (19b-4s), but may delay the approval of individual fund registration statements (S-1s). This approach allows the SEC more time to evaluate the risks associated with Proof-of-Stake (PoS) cryptocurrencies like Ethereum. The deadline for VanEck’s Ethereum spot ETF request is approaching on May 23rd.
The price of Ethereum has experienced a significant surge, reaching $3,666.91 with a 17.98% increase in the last 24 hours. This surge has resulted in a market capitalization of $439 billion, reflecting substantial investor interest and trading activity, with a 24-hour real volume of $22.92 billion.
Currently, Ethereum is down 25.01% from its all-time high of $4,867.17, recorded on November 10, 2021. However, it has shown recovery from its cycle low of $885.57 on June 18, 2022, marking an impressive 312.18% increase from that point. This resurgence highlights Ethereum’s strong market position and investor confidence amidst ongoing developments in the crypto space.
The recent price movement of Ethereum indicates strong bullish momentum. The ETH/USD chart shows a sharp breakout above the resistance level, supported by significant trading volumes. The Relative Strength Index (RSI) has surpassed the overbought threshold, indicating strong buying pressure. This suggests that investors have high confidence in Ethereum’s short-term prospects.
Furthermore, the Moving Average Convergence Divergence (MACD) histogram shows a widening gap between the MACD line and the signal line, signaling a clear bullish trend. Additionally, Ethereum has exceeded the upper limit of the Bollinger Bands, indicating continued upward movement. These technical indicators collectively indicate a sustained bullish trend, with potential price targets around the $4,000 mark in the short term.
The approval of a spot Ethereum ETF would be a significant milestone for cryptocurrency adoption. It could attract a wider range of investors and potentially drive ETH to new highs. Currently, Ethereum’s price is at $3,655.75, reflecting a surge due to increased approval odds.
Ethereum has risen 19% in the last 24 hours, from $3,408 to $3,719, indicating strong investor confidence. Breaking above the Bollinger Bands suggests that bulls now control ETH’s short-term price action.
Data from Exchange Reserve shows increasing selling pressure, but Exchange Netflow Total suggests lower selling pressure compared to the 7-day average.
According to Coinglass.com, 76,107 traders were liquidated in the past 24 hours, with ETH shorts leading at $80.78 million. The largest single liquidation occurred on Binance, involving an ETH/USDT trade valued at $25.72 million.
The potential approval of the Ethereum Spot ETF could significantly enhance ETH’s market position, attracting more investors and increasing liquidity. This development could pave the way for Ethereum’s price to surpass $4,000 and continue to rise.
