- Ethereum’s price surged 18% to reach $3,691 on speculation that the SEC may approve spot ETH exchange-traded funds (ETFs), with analysts raising approval odds from 25% to 75%.
- Market indicators showed mixed sentiment but strong momentum, with Ethereum dominating 17% of the crypto market and significant liquidations in derivative positions reported.
In the fast-paced world of cryptocurrencies, Ethereum (ETH) has taken center stage with a remarkable 18% surge against the US dollar. This surge comes amidst intense speculation that the US Securities and Exchange Commission (SEC) is poised to greenlight several spot ether exchange-traded funds (ETFs). If approved, these ETFs could mark a pivotal moment for the digital asset and the broader crypto market.
On Monday, Ethereum hit an intraday peak of $3,691 per coin, fueled by widespread rumors circulating on social media and forums regarding potential SEC approvals. According to sources cited by Coindesk, exchanges have reportedly been instructed by the SEC to accelerate updates to their 19b-4 filings, a move seen as a step towards imminent approval.
The anticipation has been further stoked by analysts from Bloomberg, Eric Balchunas and James Seyffart, who significantly raised their approval predictions from 25% to 75%. This bullish sentiment catalyzed a substantial price increase for ETH, which climbed from $3,140 at 3 p.m. Eastern Time on May 20 to its peak of $3,691 by 6:30 p.m. EDT.
Here's a list of all entrants in the spot #Ethereum ETF race. The 'ETHness Stakes'
— James Seyffart (@JSeyff) May 20, 2024
(h/t to @LongTailFinance for the name) pic.twitter.com/ZBQVJ6ppKp
Market indicators for ETH/USD reveal a mixed sentiment: while most oscillators remain neutral, the awesome oscillator and momentum indicators are signaling positive movements, underlining the underlying strength in the market. Moreover, moving averages (MAs) across all timeframes consistently show a bullish trend, highlighting strong optimism among traders and investors.
ETH currently commands a 17% dominance within the $2.58 trillion cryptocurrency market, with an overall valuation of $436 billion. The asset also boasts the third-highest trading volume of the day, reaching $26.99 billion in the last 24 hours, with stablecoin tether (USDT) emerging as the most traded pair, followed by FDUSD, USDC, BTC, and the Korean won.
As the market rapidly climbs, significant positions in derivatives have been liquidated, totaling $302.52 million, with ETH shorts accounting for $102.78 million of the liquidated amount in the past day. Coinglass.com reports 76,107 traders were liquidated in the past 24 hours, with the largest single liquidation order occurring on HTX, involving an ETH/USDT trade valued at $3.11 million.
Looking ahead, the focus now shifts to the potential for Ethereum to surpass the $4,000 mark, spurred on by the SEC’s impending decision on VanEck’s spot ETH ETF, scheduled for May 23. Industry experts and analysts believe that such approval could serve as a catalyst for even greater gains, not just for Ethereum, but for the broader crypto market.
You may not like it, but intersection of crypto & ETFs remains the most fascinating place in asset management right now…
— Nate Geraci (@NateGeraci) May 21, 2024
Everyone is not only involved, but has this front & center.
World’s largest asset managers. Govt/politicians. Regulators. Media. Investors.
Wild stuff.
The current bullish sentiment surrounding Ethereum underscores a growing optimism among investors and market participants, driven by the anticipation of regulatory approval for spot ETH ETFs. Should the SEC greenlight these ETFs, it could potentially propel Ethereum towards new price milestones and mark a significant step forward in the mainstream adoption of cryptocurrencies.
The Road Ahead for Ethereum
As we navigate through the coming days, all eyes remain on the SEC and its decision regarding Ethereum ETFs, a decision that could redefine the future of digital assets.
