Ethereum (ETH) Price Eyes $4,000 As Odds of Spot Ether ETF Improve

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As an experienced market analyst, I’ve closely followed the cryptocurrency space for years. The recent surge in Ethereum (ETH) price, with gains of over 20% in a day and extending weekly gains to more than 25%, is an exciting development that I’ve been closely monitoring.

Ethereum (ETH), the world’s second-largest cryptocurrency, experienced a robust surge of approximately 20% in value over the last 24 hours. This uptick in price is driven by heightened optimism regarding the potential approval of a spot Ethereum Exchange Traded Fund (ETF).

Ethereum (ETH) Price Rally to $4,000

At present, Ethereum (ETH) is currently priced at $3,692, marking a significant increase of 19.64% from the previous press time. This surge has elevated ETH’s market capitalization to an impressive $443 billion. Over the past week, ETH has achieved weekly gains exceeding 25%. Additionally, daily trading volume for Ethereum has experienced a remarkable jump of approximately 264%, reaching more than $36.24 billion.

As a market analyst, I’ve observed that the U.S. Securities and Exchange Commission (SEC) requested updates from the issuer regarding their 19b-4 filings for a spot Ethereum Exchange Traded Fund (ETF) on Monday. Previously, there had been little optimism among analysts about the SEC’s approval of a spot Ethereum ETF. This pessimism stemmed primarily from the limited interaction between the SEC and the issuers in the past.

Following recent market events, the probability of approving a spot Ethereum ETF has risen significantly among analysts. According to well-known cryptocurrency expert Michael van de Poppe, this likelihood now exceeds 75%, compared to the earlier estimation of just 25%.

“The odds of an immediate rejection for the Ethereum ETF have dropped dramatically. It’s possible that there will be a delay, but the probability of approval prior to August is quite high. The bull market for Ethereum is now in full swing.”

As a crypto investor, I’m eagerly anticipating the decision on the VanEck spot Ethereum ETF, which is expected by Thursday, May 23. With this upcoming development in mind, it’s reasonable to expect continued price volatility in the Ethereum market. If any positive news breaks, it could potentially propel the Ethereum price upward, possibly reaching $4,000 and beyond.

ETH Whales Back In Action

I’ve analyzed the Ethereum market and noticed that large investors, or “whales,” have recently made significant purchases. In just the past day, these whales have acquired approximately 110,000 ETH, equating to a substantial value of around $341 million.

#Ethereum whales bought over 110,000 $ETH in the past 24 hours, worth around $341 million!
— Ali (@ali_charts) May 20, 2024

Additionally, the value of Ethereum relative to Bitcoin has surged, even as Bitcoin continues to gain ground. Consequently, certain traders have opted to swap their Bitcoin holdings for Ethereum.

With the growing likelihood that an Ethereum ETF will be approved, investor James Fickel (@jamesfickel) recently obtained a loan of 350 WBTC, or roughly $25 million, from Aave. He then transformed this borrowed amount into 6,905 ETH to buy a long position in the ETH/BTC trading market. Since the introduction of the Bitcoin ETF on January 10, Fickel has held a long-term investment stance on this particular pair.

So far, Fickel has obtained a loan of 2,741 WBTC, which is equivalent to $150.3 million, from Aave. In return, Fickel received 50,693 ETH using an exchange rate of 0.05408.

As a crypto investor, I’m excited to share that recent developments suggest an increased likelihood of approval for Ethereum (ETH) Exchange Traded Funds (ETFs). The Securities and Exchange Commission (SEC) has mandated expedited updates to Form 19B-4 documents related to these ETFs. This means that the regulatory hurdles are being addressed more swiftly, potentially paving the way for the green light on Ethereum ETFs.
As a financial analyst, I’d rephrase that as: I, James Fickel (@jamesfickel), kept borrowing an amount equivalent to 350 $WBTC or approximately 25 million dollars from Aave. Then, I exchanged this borrowed $WBTC for around 6,905 $ETH to initiate a long position in Ethereum.
— Lookonchain (@lookonchain) May 21, 2024

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2024-05-21 07:31