Ethereum ETF coming soon? Price predictions and possible changes

19 January 2024 - 15:00

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Ethereum has doubled in value over the past year. Could the possible approval of a spot ETF encourage a new rally? Here are the experts’ predictions on the price.

Ethereum ETF coming soon? Price predictions and possible changes

Ethereum ETF coming soon? The recent approval of Bitcoin ETFs laid the groundwork for a similar process for Ethereum. The possibility for Ethereum investors to have new options available to expose themselves to the cryptocurrency without having to directly purchase the assets themselves has pushed up the price of Ethereum by almost 10% in the last few days, at the highest level since May 2022.

Some analysts, such as Bloomberg Intelligence’s James Seyffart, remain optimistic about the prospects of a publicly traded Ethereum ETF. Others are more cautious.

While investors await developments, analysis of the current environment and market dynamics offers interesting perspectives on possible price evolution and implications for the crypto community.

Historical trend and forecasts on Ethereum

To understand Ethereum’s future prospects, it is useful to examine its historical performance. After the historical peak in November 2021, Ethereum suffered a decline until June 2022, when it hit a low of $880. Currently, Ethereum has been going through an upward phase for over a year, with a clear acceleration in recent months: since last October the price has grown by over 70%.

Ethereum weekly graph
Source: Tradingview

However, the current price is still far from the main resistance of $2,900, which is necessary for a clear recovery. Compared to Bitcoin, which broke above the $42,000 resistance, Ethereum still needs to rise 95% to reach its all-time peak.

Analyzing the weekly trend of Ethereum, it is highlighted that overcoming the resistance in the $2,400 area was crucial for its growth. The next target is the key resistance at $2,900, determined through Fibonacci retracements. Exceeding this level could push Ethereum towards the highs of March 2022, paving the way for a possible bull run. However, on-chain data points to challenges related to transaction fees and declines in blockchain usage for NFTs and DeFi.

However, the possibility of an Ethereum ETF could provide a further boost to its price in 2024.

Ethereum ETF coming soon: analyst opinions

With the approval of Bitcoin Spot ETFs, the focus now turns to Ethereum Spot ETFs. According to analysts at JPMorgan, there is a 50% chance that the SEC will approve Ethereum ETFs by May.

The SEC’s stance on Ethereum as a security or commodity will be crucial. Chairman Gensler clarified that the approval of Bitcoin ETFs does not represent a rethink of cryptocurrency standards.

According to some cryptocurrency and blockchain experts, “Staking, as well as smart contract functionality, is one of the key differentiators between tokens like Ethereum and store-of-value tokens like Bitcoin. The main question the SEC will have to answer is whether these features prevent the token from becoming an ETF.”

Several experts, including Bloomberg’s Seyffart, are more optimistic, indicating a 70% probability. Regardless, the introduction of Ethereum ETFs could have a significant impact on the price and perception of Ethereum in the cryptocurrency market.

The approval of an Ethereum ETF could be the long-awaited turning point that reignites interest and pushes Ethereum forward in the cryptocurrency market. According to industry expert Levin, this event could revolutionize the landscape, breathing new life into Ethereum’s position and creating a ripple effect, stimulating interest and demand for other major altcoins. A potential paradigm shift that could reshape the dynamics of the entire cryptocurrency market.

The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader maintains full freedom in his own investment choices and full responsibility in making them, since only he knows his risk appetite and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings.|

Original article published on Italy 2024-01-17 12:23:14. Original title: ETF Ethereum in arrivo? Previsioni su prezzo e cosa cambia

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