An Ethereum analyst from a venture capital firm has stated that the approval for a Spot Ethereum ETF could potentially happen as early as this week, with odds placed at 72.7%. This news has led to predictions of a 200% increase in the price of Ether following the approval by the Securities & Exchange Commission.
Despite the surge in supply on exchanges to a 2024 peak, Ethereum has managed to sustain above the $3,000 mark. Traders are closely monitoring two key events: the approval of the Spot Ether ETF and the activities of large wallet investors, known as whales, who hold significant amounts of ETH.
The analyst behind the Twitter handle @DarkCryptoLord believes that there is a high likelihood of the SEC approving a Spot ETH ETF this week, with traders expecting this approval to have a positive impact on the price of Ethereum. Eric Balchunas, a Senior ETF analyst at Bloomberg, expressed his confusion over the delay in the approval process by the US financial regulator.
Data from Santiment shows that the supply of Ethereum on exchanges has reached its highest level in 2024, indicating that holders of Ether are anticipating a price rally and are waiting to capitalize on potential profits. Currently, there are 19.23 million Ether being held in wallets across crypto exchanges.
Another analyst using the Twitter handle @follis_ has drawn parallels between the price charts of Ether and Bitcoin prior to a 200% rally in the latter. If the Ether ETF attracts the same level of interest from institutional investors as Bitcoin did, it is possible that Ethereum could see a significant increase in price.
In addition to Ether, altcoins related to Ethereum, staking tokens, and Layer 2 scaling assets could also experience gains. The post-ETF gains seen in Bitcoin were reflected in assets like BRC-20, suggesting a similar trend could occur for Ethereum.
As of the latest data, Ether is trading at $3,152 on Binance, with the cryptocurrency market eagerly awaiting the approval of the Spot Ether ETF and the potential impact it could have on the price of Ethereum.