Key Points
- Ethereum price increases by 5% surpassing $3,300 in anticipation of the SEC’s decision on spot Ethereum ETFs.
- Approval of these ETFs could significantly impact Ethereum’s market value.
Ethereum’s value has risen by 5%, going beyond $3,300, due to heightened expectations of the United States Securities and Exchange Commission’s (SEC) verdict on several spot Ethereum exchange-traded funds (ETFs). Market analysts anticipate that the SEC’s approval, expected this week, could have a significant effect on the market.
Positive Expectations for SEC’s Ethereum ETF Approval
Nate Geraci, the president of the ETF Store, has shown optimism regarding the SEC’s potential approval of the ETFs in the near future. Geraci expressed his confidence in a post published on Sunday, stating his belief that the approval week has arrived and he sees no reason for further delays. His comments mirror the widespread industry belief that the SEC is prepared to approve these products after several weeks of regulatory review.
Bloomberg analysts Eric Balchunas and James Seyffart also share this sentiment, predicting that the ETFs could start trading as early as mid-July. The minimal feedback from the SEC on the final registration statements indicates that the applications are close to approval. Matt Hougan of Bitwise Asset Management also emphasized the rapid progress, noting the minimal adjustments required in recent filings.
Market Reaction and Technical Analysis
The announcement has boosted Ethereum’s price, which currently stands at $3,338, up from $2,909 just a week ago. Technically, Ethereum is trading above $3,280 and the 100-hourly Simple Moving Average, with a bullish trend line forming support at $3,270. Resistance levels noted at $3,340 and $3,350, have posed challenges for further gains in the past.
Ethereum is on the verge of breaking through these resistance levels, potentially surging past $3,500. However, if it fails to clear the $3,340 mark, it might result in a downside correction, with key support levels at $3,220 and $3,150.
Anticipated Impact on the Crypto Market
The possible approval of spot Ethereum ETFs has garnered considerable interest from institutional investors and financial advisors. Nate Geraci highlighted the rising demand for crypto assets, suggesting that Ethereum ETFs have the potential to mirror the significant success seen with Bitcoin ETFs.
He emphasized that Bitcoin ETFs had the most successful launch in the industry’s history in cumulative terms. Geraci speculated that Ethereum ETFs could similarly achieve substantial success, positioning them as the second most successful ETF launch ever. Bitwise Asset Management projects that spot Ethereum ETFs could attract $15 billion in net inflows by the end of 2025.
The crypto community is closely monitoring the SEC’s decision on Ethereum ETFs, which could be a turning point for the market. This decision could drive significant interest and investment in Ethereum, boosting the asset price.
