23 May 2024
Ethereum (ETH) price is soaring ahead of the Securities and Exchange Commission (SEC) decision regarding the Spot ETH ETF (exchange-traded fund). Investors’ and market watchers’ optimism has increased as the ‘King of altcoins’ surpasses the $3,900 mark.
Some analysts believe this bullish momentum could soon propel ETH’s price above all established price targets.
Ethereum Soars Amid ETF Approval Expectation
Ethereum, the second-largest cryptocurrency by market capitalization, has seen a significant uptick this week. As rumors of ETH spot ETFs being approved this Wednesday surged, the community’s sentiment towards the asset turned extremely bullish.
Previously, Bloomberg experts had asserted that chances of an ETF approval were slim due to the US government’s crackdown on the industry. However, this week’s U-turn from the Biden administration sparked a positive sentiment that increased the chances to 65-75%.
As a result, Ethereum surged an impressive 30.4% from its price seven days ago. The King of altcoins went from trading just below the $3,000 mark to surpassing the $3,900 resistance level at the time of writing.
The community’s optimistic expectations continue as several US lawmakers urge SEC chair Gary Gensler to approve Ethereum ETFs.
As reported by Eric Balchunas, a bipartisan group of House lawmakers sent a letter on Tuesday to the SEC’s Chair asking for the approval of ETH ETFs “and other digital assets.”
According to the letter, the Congress members believe digital asset-backed ETFs offer “investors a regulated and transparent investment vehicle to gain exposure.” The US lawmakers urged the Commission to “maintain a consistent and equitable approach when reviewing upcoming applications” for other crypto ETFs.
Are Price Targets Too Low?
Ethereum has performed remarkablely over the past few days. ETH has surged 5.6% as the community awaits the SEC’s decision.
As pointed out by several market watchers, ETH’s weekly candle is resting levels not seen since the first half of March. Crypto Yoddha highlighted Ethereum’s historic behavior for the previous all-time high (ATH) runs.
Per the chart, the second-largest crypto asset went through a 700-day accumulation phase before breaking out and starting the bullish run. Similarly, ETH seemingly ended a 700-day accumulation period this cycle, which could lead to a rally towards a new ATH, if history repeats. The analyst set a target of $15,300 for this cycle.
Likewise, Crypto Jelle pointed out that ETH broke out of a multi-month falling wedge pattern. Its recent performance successfully reclaimed the key resistance above the $3,600 mark and is currently testing the $3,900 price range.
The trader considers that, if this is the current performance before the approval of ETH ETFs, his $10,000 target for this cycle might be “too low.” However, he urged investors to “try not to get sucked into overtrading.”
He considers the initial response to the decision “hard to know” despite the bullish sentiment. Ultimately, Jelle suggests the community to “focus on what you know” as the long-term outlook is much clearer.
On a similar note, Crypto analyst Mikybull points out that ETH is repeating the 2020 path that “sparked off Alts season in 2021.” Due to this, the trader considers that the bull targets for this cycle are $9,000-$11,000.
The SEC’s decision regarding ETH ETFs will be announced around 8:30 pm UTC on May 23.