Closely followed trader and economist Alex Krüger believes Ethereum (ETH) is headed for new all-time highs (ATHs) due to one major catalyst.
Kruger tells His 175,400 followers on social media platform
The odds of an ETH ETF approval by the U.S. Securities and Exchange Commission (SEC) have suddenly increased this week, with ETH up more than 20% in the past day.
He also believes that Bitcoin (BTC) will be “much higher” before the end of 2024.
“My base scenario was:
- Bitcoin much higher at the end of the year.
- Ethereum is underperforming due to an ETF rejection.
- Ethereum is overperforming from the US elections as elections would lead to a [SEC Chair Gary] Removal of Gensler and subsequent ETF approval in 2025.
An ETH ETF approval this week would help things move forward. [May 21st’s] This move was just a repositioning of the market and closing the short positions (see the open interest chart below), as almost no one expected an endorsement. Then the inflows would come, pushing ETH to ATHs. Don’t let an approval fade away. It’s not even remotely priced in yet. The market would probably shift back towards ‘you’re really a genius.’ With ETH leading the way for a while. Even after today, ETH/BTC is still in the red this year. Time for it to go much higher.
Note: Even though it’s unlikely now, if the ETF is rejected, we’re in for a world of hurt. Keep alerts enabled during US hours until the 23rd.”
Ethereum is trading at $3,809 at the time of writing, up more than 22% in the last 24 hours. ETH reached its ATH of approximately $4,900 in November 2021.
Kruger suspects the SEC is facing political pressure to approve ETH ETF applications due to the politics surrounding the US presidential election in November.
“Many will disagree, but I do believe that the SEC’s apparent change in position was politically driven, coming from the top of the Democratic party and with elections in mind. Possibly caused by Trump’s sudden support for crypto, which forced the Democrats’ hand.”
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Generated image: Midjourney
Shutterstock/Tomasz Makowski