Ethereum Soars 5.6% Ahead Of ETF Decision, Analysts Set Bigger Price Target

Rubmar Garcia

Last Updated: May 23, 2024 7:00 pm

3 mins read

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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.”

US Lawmakers Letter to SEC’s Chair. Source: Eric Balchunas.

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.

ETH, EThereum — Ethereum’s behavior during previous bull runs. Source: Crypto Yoddha

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.

ETH, Ethereum, ETHUSDT — ETH is trading at $3,930 in the three-day chart. Source: ETHUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

Rubmar Garcia

Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.

From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.

In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.

At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.

After the failure of her home country’s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education.

Moreover, the peculiar nature of the crypto community sparked Rubmar’s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies –or her favorite memes.

In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.

She also has a passion for learning new languages and cultures, having set the goal to learn another six languages – currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.

In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.

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