Arthur Cheong, the founder and CEO of DeFiance Capital, has suggested that Ether (ETH) could reach the $4,500 mark prior to the commencement of trading for the first spot Ether exchange-traded funds (ETFs). This prediction aligns with recent regulatory approvals that have heightened expectations within the crypto community.
As of the latest data, Ether was trading at $3,903, marking a 2.57% increase in the last 24 hours. Cheong’s forecast, shared with his 167,000 followers on X, implies a potential 15% increase from current levels to the target of $4,500.
- Ether’s Current Price: $3,903
- Predicted Price: $4,500
- Required Growth: Approximately 15%
SEC’s Role in ETF Approval
On May 23, the U.S. Securities and Exchange Commission (SEC) approved the 19b-4 filings for eight spot Ether ETFs, allowing them to be listed on various exchanges. This group includes major financial institutions like VanEck, BlackRock, and Fidelity, among others. While this is a significant step, the approval of S-1 filings is still pending, which could take additional time.
- Represents initial regulatory acceptance.
- Sets the stage for the subsequent approval of S-1 filings.
James Seyffart, a Bloomberg ETF analyst, noted that it might take weeks to months for S-1 approvals, which are essential for the ETFs to become operational. The anticipation surrounding these approvals is considered a substantial catalyst for Ether’s price movements.
Resistance and Market Catalysts
Ether currently faces considerable resistance at the $4,000 and $4,100 levels. A breakout above $4,100 could trigger the liquidation of over $500 million in leveraged short positions, providing further upward momentum.
- Key Resistance Levels:
- $4,000
- $4,100
- Potential Impact of Breaking Resistance:
- Significant short squeeze leading to rapid price increases.
Long-Term Outlook
The broader implications of an operational Ether ETF are profound, with Andrey Stoychev from Nexo suggesting that such developments could propel Ether’s price to $10,000 by the end of 2024. This would parallel Bitcoin’s trajectory following its ETF approvals.
- Potential High:
- $10,000 by end-2024
- Comparative Analysis:
- Similar to Bitcoin’s post-ETF performance
With the regulatory landscape evolving and Ether showing robust market dynamics, the possibility of Ether reaching $4,500 before the ETFs are fully operational remains plausible. This scenario is backed by strong community sentiment, strategic institutional movements, and the transformative impact of potential ETF approvals.
