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

The world’s second-largest cryptocurrency, Ethereum (ETH), has experienced a robust bullish surge, gaining 20% in the past 24 hours. This rally comes amid increasing optimism for the approval of a spot Ethereum ETF.

Ethereum (ETH) Price Rally to $4,000

As of press time, the Ethereum (ETH) price is trading 19.64% up at $3,692 with a market cap of $443 billion. With this, ETH has extended its weekly gains to more than 25%. On the other hand, the daily trading volume for ETH has also skyrocketed by a staggering 264% to over $36.24 billion.

This happened as the U.S. SEC pushed the issuer to update their 19b-4 filings for spot Ethereum ETF on Monday.  Until last weekend, market analysts were not hopeful of the SEC’s nod for a spot Ethereum ETF. This was specifically due to the lack of communication between the SEC and the issuers.

However, after yesterday’s developments, market analysts have increased the odds of a spot Ether ETF approval from 25% earlier to now at over 75%. Popular crypto analyst Michael van de Poppe noted:

“The chances of denial on the spot Ethereum ETF have decreased by a mile. Perhaps there’s a delay, but the chances of an approval before August is significant. The bull market is here”.

The first decision over the VanEck spot Ethereum ETF will come by  Thursday, May 23. Thus, we can expect some price volatility to continue going further. Any positive development can further steer the Ether price all the way to $4,000 and above.

ETH Whales Back In Action

The Ethereum whales are back in action as they have scooped 110,000 ETH worth a staggering $341 million in the last 24 hours.

Also, the ETH/BTC pair has been on a sharp rise, despite the strong rally in Bitcoin. As a result, some market players have started exchanging their Bitcoins for Ethereum.

As the odds of spot Ethereum ETF approval increase, investor James Fickel (@jamesfickel) has borrowed 350 WBTC ($25 million) from Aave, converting it into 6,905 ETH to long the ETH/BTC trading pair. Fickel has maintained a long position on ETH/BTC since the launch of the Bitcoin ETF on January 10.

To date, Fickel has borrowed a total of 2,741 WBTC ($150.3 million) from Aave, exchanging it for 50,693 ETH at a rate of 0.05408.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.