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Will the SEC Endorse Ethereum ETFs? Ether (ETH) Value Surges Following Speculation of SEC Policy Shift
The price of Ether (ETH) surged on Monday as traders speculated that the SEC might approve Ethereum ETFs as early as this week, following the emergence of rumors regarding a significant shift in the SEC’s stance.
ETH was last seen trading with an increase of over 10% in the vicinity of $3,400.
Bloomberg ETF analyst Eric Balchunas shared on X that he and fellow analyst James Seyffart had raised their approval probability to 75% after receiving information suggesting that the SEC could be making a “180” degree turn.
Update: @JSeyff and I are raising our odds of spot Ether ETF approval to 75% (up from 25%), hearing discussions this afternoon that the SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
With deadlines approaching to approve, deny, or extend certain ETF applications as soon as Thursday, an approval could be imminent this week.
Prior to the recent rumors of an SEC reversal, many had anticipated that Ethereum ETF rejections would be forthcoming.
In fact, the SEC has reportedly been considering classifying Ether as a security in recent months.
Will SEC Approve Ethereum ETFs?
Bloomberg analysts Balchunas and Seyffart have a strong history of accurately forecasting crypto ETF approvals.
They actively supported the notion that spot Bitcoin ETF approvals were forthcoming in 2023, despite prevailing market skepticism at that time.
It is not surprising, therefore, that a significant repricing is currently occurring in the Ether market. Investors are fervently increasing their bets that the SEC will approve spot Ethereum ETFs, driving the price considerably higher. Why?
Because the approval of Ethereum ETFs would provide institutional investors with much easier access to gain exposure to Ether.
Similar to what occurred with Bitcoin, this is likely to significantly enhance the Ether price over the long term.
Where Next for ETH?
The recent rise in the Ether price has allowed it to break free from a downward trend channel that had been established since mid-March.
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ETH has also surpassed its key moving averages and recently found robust support at its 2024 uptrend.
Technical analysis indicates that the short-term outlook for the Ether price is optimistic.
The next target for upward movement is the April highs above $3,700. Following that, a near-term test of March highs exceeding $4,000 is probable.
A $4,000 Ether price is likely very soon if the SEC approves Ethereum ETFs. Source: TradingView
If Ether ETFs receive approval, it will coincide with a period of improving market sentiment.
Recently released US jobs and CPI inflation data for April alleviated concerns regarding the economy overheating.
This has raised hopes that the Fed may still be able to implement multiple interest rate cuts this year.
Spot Bitcoin ETF inflows also increased last week as over 500 asset managers disclosed ETF exposure through 13F filings.
The Bitcoin ETFs acquired more than 14,000 BTC this week. The miners only produced 3,150. Consider that. Wow. It’s a HUGE and expanding delta. Technically, Bitcoin is coiling on nearly every indicator. $70,000 is imminent. We are going up, folks. Hold on to your hats and sunglasses.
— Mike Alfred (@mikealfred) May 18, 2024
Traders were already discussing a retest of Bitcoin’s all-time highs. This conversation is likely to intensify, with Ethereum ETFs expected this week.
Nvidia earnings and FOMC minutes could also serve as catalysts for additional upward movement.
The Ether price had been trailing BTC prior to Monday’s surge.
A sustained improvement in market sentiment, combined with Ethereum ETFs, could be the catalyst needed to propel the Ether price back to its record highs near $4,900.
If the SEC approves Ethereum ETFs, that could help propel ETH back to record highs. Source: TradingView
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