The price of Ethereum (ETH) is surging ahead of the Securities and Exchange Commission’s (SEC) decision regarding the Spot ETH ETF (exchange-traded fund). Optimism among investors and market observers has increased as the ‘King of Altcoins’ crosses the $3,900 mark.
Some analysts believe that this bullish momentum could soon push ETH’s price above all established price targets.
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Ethereum Rises Amid ETF Approval Expectation
Ethereum, the second largest cryptocurrency by market capitalization, has seen a significant increase this week. As talk of the approval of ETH spot ETFs increased this Wednesday, community sentiment towards this asset turned extremely bullish.
Previously, Bloomberg experts had claimed that the chances of an ETF approval were slim due to the US government’s crackdown on the sector. However, the Biden administration’s about-face this week created positive sentiment increased the chance of 65-75%.
As a result, Ethereum rose an impressive 30.4% against its price seven days ago. The king of altcoins went from just below the $3,000 mark to crossing the $3,900 resistance level at the time of writing.
The community’s optimistic expectations continue as several US lawmakers urge SEC Chairman Gary Gensler to approve Ethereum ETFs.
As reported by Eric Balchunas, a bipartisan group of House lawmakers sent a letter to the SEC chairman on Tuesday asking for approval of ETH ETFs “and other digital assets.”
According to the letter, the members of Congress believe that digital asset-backed ETFs “provide investors with a regulated and transparent investment vehicle to gain exposure.” The US lawmakers urged the Commission to “maintain a consistent and fair approach to reviewing upcoming applications” for other crypto ETFs.
Are the price targets too low?
Ethereum has performed remarkably in recent days. ETH is up 5.6% as the community awaits the SEC’s decision.
As several market watchers have noted, ETH’s weekly candle is at a rest level not seen since the first half of March. Crypto Yoddha highlighted Ethereum’s historical behavior during the previous all-time high (ATH) runs.
According to the chart, the second largest crypto asset went through a 700-day accumulation phase before breaking out and starting the bullish run. Likewise, ETH seemingly ended a 700-day accumulation period in this cycle, which could lead to a rally towards a new ATH if history repeats itself. The analyst set a target of $15,300 for this cycle.
This also applies to Crypto Jelle pointed out that ETH broke out of a multi-month bearish wedge pattern. The recent performance has successfully reclaimed the key resistance above USD 3,600 and is currently testing the USD 3,900 price range.
The trader believes that if this is the current performance before the approval of ETH ETFs, his $10,000 target for this cycle may be ‘too low’. However, he urged investors to “try not to get drawn into overtrading.”
He sees the initial reaction to the decision as ‘difficult to predict’, despite the bullish sentiment. Ultimately, Jelle advises the community to focus on what you know because the long-term prospects are much clearer.
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Likewise, says Crypto analyst Mikybull points out that ETH repeats the 2020 path that “kickstarted the 2021 Alts season.” This makes the trader believe that the bull targets for this cycle are $9,000-$11,000.
The SEC’s decision regarding ETH ETFs will be announced on May 23 around 8:30 PM UTC.
Featured image from Unsplash.com, chart from TradingView.com