Ethereum has recently topped the $3,300 mark, with industry analysts tipping the approval of spot Ethereum exchange-traded funds (ETFs) this week, according to a report from BeInCrypto. This surge is fueling optimism among investors, with some predicting substantial price increases in the near future.
Quick Take
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Ethereum hits $3,300 amid ETF approval speculations.
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Nate Geraci and other analysts predict imminent approval of spot ETH ETFs.
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Institutional interest in Ethereum grows as ETF approval nears, inflows crossed $72 million last week.
Analyst Predicts Spot Ethereum ETF Approval This Week
Spot ETH ETF approval soon? | Source: X
Nate Geraci, president of The ETF Store, voiced his expectations on social media, indicating that the launch of spot ETH ETFs could be imminent. "Welcome to spot ETH ETF approval week," he tweeted, expressing confidence that there is no reason for further delays.
Geraci's sentiment is echoed by an anonymous source who told Cointelegraph that these ETFs are expected to launch by the end of this week. This aligns with recent filings by issuers like VanEck and 21Shares, who have amended their registrations in anticipation of the Securities and Exchange Commission (SEC) giving the final nod.
Read more: Spot Ethereum ETFs Will Be Fully Approved by Summer: SEC Chair Gensler
Ethereum Inflows Cross $72 Million Last Week
In anticipation of the ETF launch, Ether has seen substantial inflows, totaling over $72.1 million in the past week, second only to Bitcoin. This indicates strong investor confidence and a positive outlook for Ethereum’s future performance.
Thomas Perfumo, Head of Strategy at Kraken, believes that the spot ETFs could bring in an additional $1 billion monthly inflow into Ethereum. This new demand could push Ethereum past its all-time high of $4,900, reaching new heights above $5,000.
Geraci and other industry leaders have noted a growing interest in Ethereum among institutional investors. This interest is partly driven by the potential ETF approval and Ethereum's robust fundamentals. Matt Hougan from Bitwise Asset Management mentioned on CNBC’s ETF Edge that the minimal amendments required in recent filings indicate that approval could be just around the corner.
Geraci emphasized that the demand for Ethereum ETFs could mirror the success of Bitcoin ETFs. He stated, “Spot Bitcoin ETFs were the most successful ETF launch in the industry’s history. Spot Ethereum ETFs could be the second most successful launch ever.”
Ethereum Price Rallies Past $3,300
The price of Ether (ETH) has seen a significant rally, currently trading at $3,331, marking a 16% increase from $2,909 over the past week. This surge is a strong indicator of the market's positive outlook on the potential ETF launch as well as an overall positive market sentiment since the weekend by the Trump effect.
Tom Dunleavy, a managing partner at MV Global, believes the approval of spot ETH ETFs could attract up to $10 billion in new inflows. This, according to him, could propel Ether to new all-time highs by the end of the year. Dunleavy highlights that traditional investors might find ETH ETFs more appealing than Bitcoin ETFs due to Ethereum's functionality and cash flows.
Ethereum Price Performance: $3,350 Next?
ETH/USDT price chart | Source: TradingView
Market analysts are optimistic about Ethereum’s price performance in the wake of the anticipated ETF approval. Daan Crypto, a prominent trader, suggested that the approval could be a bullish catalyst for ETH, predicting it would reach $3,350 soon. Michaël van de Poppe, founder of MN Trading, echoed this sentiment, indicating that the Ethereum ETF could enhance its market dominance.
On-chain analytics and fundamentals point to a continued bullish sentiment among investors. Ethereum's price action, which has lagged behind Bitcoin for the past 18 months, is expected to rebound quickly once the ETFs launch.
Read more: Ethereum Climbs Above $3,100 Amid Whale Activity and Upcoming ETF Approval
Ethereum Technical Analysis
From a technical perspective, Ethereum is showing strong bullish indicators. The daily candlestick chart reveals that Ethereum is closing its third consecutive bullish daily candle for the first time since June. The crypto is also attempting a break above the 100 SMA, which, if successful, could solidify its bullish momentum.
Solana ETFs After Ethereum ETF Launch?
The launch of spot Ethereum ETFs could set a precedent for other crypto ETFs. Recently, the Chicago Board Options Exchange (CBOE) filed for the trading of spot Solana ETFs, with issuers like VanEck and 21Shares leading the charge. This move, however, awaits SEC approval, which could take until 2025.
Read more: VanEck Files for First Solana ETF in the U.S.: A Potential Game Changer?
Conclusion
Ethereum's recent performance and the anticipation of ETF approvals highlight a pivotal moment for the crypto market. Investors and analysts alike are closely watching for the SEC's final decision, which could mark a significant development for Ethereum and its place in the financial world.
As we move into the new week, the focus remains on the SEC's decision regarding the spot Ethereum ETFs. While industry analysts and market conditions seem to favor approval, it is essential to remain cautious. The potential ETF launch could boost Ether's price and reshape the broader crypto market by attracting substantial institutional interest and investment. However, investors should be aware of the inherent risks and market volatility associated with cryptocurrencies and stay informed to make prudent investment decisions.
