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Analysts agree that the launch of ETH spot ETFs could act as a major catalyst for Ethereum price in the coming months.
Ethereum price has rallied by 5%, climbing above $3,300 as anticipation grows over the US Securities and Exchange Commission’s (SEC) decision on the approval of several spot Ethereum exchange-traded funds (ETFs). Analysts predict that the approval, anticipated this week, could significantly impact the market.
Optimism Around SEC’s Ethereum ETF Approval
Nate Geraci, president of the ETF Store, has expressed confidence in the SEC’s potential approval of the ETFs in the near future. In an X post published on Sunday, Geraci remarked:
“Welcome to spot ETH ETF approval week. I’m calling it. Don’t know anything specific, just can’t come up with a good reason for any further delay at this point. Issuers are ready for launch”
His comments reflect widespread industry sentiment that the SEC is ready to approve these products after several weeks of regulatory review.
This sentiment is echoed by Bloomberg analysts Eric Balchunas and James Seyffart, who predict that the ETFs could begin trading as soon as mid-July. The minimal feedback from the SEC on the final registration statements suggests that the applications are nearing approval. Matt Hougan of Bitwise Asset Management also highlighted the quick progress, noting the minimal adjustments needed in recent filings.
Analysts agree that the launch of ETH spot ETFs could act as a major catalyst for Ethereum’s price in the coming months.
Market Reaction and Technical Analysis
The news 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.
With Ethereum almost breaking through these resistance levels, it could potentially surge past $3,500. Conversely, failing to clear the $3,340 mark might result in a downside correction, with key support levels at $3,220 and $3,150.
Anticipated Impact on the Crypto Market
The potential approval of spot Ethereum ETFs has generated significant interest from institutional investors and financial advisors. Nate Geraci pointed out the rising demand for crypto assets, suggesting that Ethereum ETFs have the potential to replicate the significant success observed with Bitcoin ETFs.
He highlighted that Bitcoin ETFs had the most successful launch in the industry’s history in cumulative terms. Geraci speculated that Ethereum ETFs could similarly achieve considerable success, positioning them as the second most successful ETF launch ever. Bitwise Asset Management projects that spot Ethereum ETFs could draw in $15 billion in net inflows by the end of 2025.
As the crypto community closely watches, the SEC’s decision on Ethereum ETFs could mark a pivotal moment for the market, driving significant interest and investment in Ethereum and boosting the asset price.
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