Ethereum Price Up 20% on Potential ETF Approval: Market Rally Ahead?

Ethereum price surges on ETF hopes, whale accumulation, and potential boost from Trump's crypto-friendly stance.
Ethereum Price Up 20% on Potential ETF Approval: Market Rally Ahead?

Key Insights

  • Ethereum's price jumped by 20% in 24 hours between Monday and Tuesday, reaching a two-month high.

  • Bloomberg analysts, Balchunas and Seyffart bumped up the odds of an Ether ETF approval to 75% (from 25%), because of political pressure on the SEC.

  • The ETF news sparked renewed investor confidence, with whales accumulating more than 300 million worth of ETH in 24 hours

  • An ETF approval could be a tipping point for a wider range of crypto acceptance and further price increases.

  • Donald Trump's pro-crypto stance as a presidential candidate adds to the positive outlook, in case he wins and keeps his word

The crypto market shook to its core between Monday and Tuesday this week, as Bitcoin broke above the $70,000 zone and Ethereum's price jumped to its highest point in the last two months.

<div class="paragraphs"><p>Ethereum is the top performer by far</p></div>

Ethereum is the top performer by far

The focus, mainly, is on Ethereum, considering how soundly it is beating the rest of the “top 10” cryptocurrencies, its “almost overnight” rally from less than $3,200 to $3,700, and its fresh new sentiment regarding the approval of the Ether ETFs.

The Catalyst Behind the Climb

On Monday, 20 May, EThereum’s price skyrocketed by around 20%, following a tweet from senior ETF analyst, Eric Balchunas.

<div class="paragraphs"><p>The bump up in the odds of an ETF approval</p></div>

The bump up in the odds of an ETF approval

In the tweet, Banchunas stated that he and James Seyffart, another seasoned ETF analyst have upgraded the odds that we see an ETF approval from a meagre 25% to an impressive 75%.

Balchunas noted that this bump-up came as a result of the SEC likely succumbing to political pressure, and reconsidering its stance on Ether and crypto in general, in light of the upcoming ETF approval.

According to Balchunas, the SEC might also be pushing for major exchanges like the New York Stock Exchange and the Nasdaq to revise their filings, to better accommodate possibly approved ETFs.

Renewed Market Bullishness

The news of better ETF approval odds has also introduced a new wave of bullish sentiment into the market, causing speculation and a crypto gold rush, as outlined by Ali in this tweet.

<div class="paragraphs"><p>Ethereum whales at it again</p></div>

Ethereum whales at it again

Ali emphasized that in the last 24 hours, the Ethereum whales bought over 110,000 $ETH, all of which was worth around $341 million.

Bitcoin investor, Anthony Pompliano also noted that the approval of these ETFs might be "the last dam" to be broken because if an Ethereum ETF is approved, it might open the floodgates for more approvals across the entire industry.

“If they approve the Ethereum ETF, they are approving the entire industry.

This is the last dam to be broken.”

Meanwhile, Donald Trump, the Republican candidate for the US presidency has been actively courting the crypto community, all but reassuring investors of a safe haven for crypto in the US.

<div class="paragraphs"><p>Trump is fine with crypto</p></div>

Trump is fine with crypto

In all, the stars seem to be aligning for one of the most volatile crypto bull runs between now and 2025, considering the incoming market-wide ETFs, the welcoming environment for crypto in the US if Trump keeps his word and the incoming post-halving bull run.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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