Ethereum
Here’s why the price of Ethereum (ETH) is rising sharply today
Ethereum staged a shocking rally as the token rose 18% in the past 24 hours, pushing the value to a month high. At the time of writing, Ethereum Price is valued at $3,659.60 with a market cap of $439.5 billion. Moments before skyrocketing, ETH price was weak around $31,000, but within 34 minutes, the price surged to $34,000, with a sharp increase in the number of transactions. Due to this, the trading volume jumped by 253%, bringing the value to $37.5 billion.
So why is the price of Ethereum rising so much today? Let’s look at this.
What is behind the rise in Ethereum prices?
After creating history as the most preferred cryptocurrency network, ETH reached its peak in 2021 when it reached its ATH of $4,891.70. But with market conditions declining, Ethereum remained low for years before experiencing a sharp rise in March 2024. And now, after weeks of hiatus, the price of Ethereum has started to rise again with a sharp rise in in the last 24 hours only due to two related factors. to market recovery and new updates on Ethereum ETF.
Bullish market conditions
After weeks of neutral sentiments limiting market conditions, bulls finally appeared in the market with a 70/100 market score. fear and greed index. This, combined with the increase in overall market capitalization to $2.61 billion and trading volume of $133.96 billion, confirms the bullish market conditions today. As a result, all cryptocurrencies, including Ethereum, recovered after making decent gains over the past 24 hours.
Moreover, Bitcoin Price targeting the ATH target of $73,750.07 after reaching $71,232, also sending altcoins higher.
Ethereum Spot ETF approved
The SEC’s decision on the Ethereum ETF will be released on Thursday, but one thing has changed, making it the main reason for the rise. After the SEC expressed its disagreement with Ethereum, investors lost all hope of hearing positive news on earnings day. Additionally, analysts presented a very low probability of approval of Ethereum Spot ETF due to Ethereum status issues between commodity and security. However, ultimately, analysts presented a 75% approval rating in the case of the ETH ETF, much higher than the previous 25%.
Bloomberg ETF analysts Eric Balchunas and James Seyffart have openly reported that the chances of approval stand at 75%, based on the SEC’s advice to exchanges to update their 19B-4 Filings on an instant basis for Spot ETH ETFs. This simple gesture changes the trajectory of people’s opinions on SEC approval, including those of Bloomberg analysts.
Update: @JSeyff and I’m increasing our odds of Ether ETF spot approval to 75% (from 25%), hearing talk this afternoon that the SEC may do a 180 on this issue (a growing issue). more political), so now everyone is scrambling (like us, everyone assumed they would be refused). See… https://t.co/gcxgYHz3om
– Eric Balchunas (@EricBalchunas) May 20, 2024
How high can the price of Ethereum go?
Ethereum is still in a bullish sentiment and could continue to rise further. Agreeing with this, crypto analyst Oliver Isaac said that Ethereum price charts form the largest daily Ethereum candle in five years, which is almost equal to the total market capitalization of Solana (SOL). He further predicted that the price of Ethereum would reach $10,000 next.
Largest daily Ethereum candle in 5 years$ETH is in place almost all the mcap of $ SOL Today
If they approve the Ethereum ETF, they approve the entire industry.
ETH at $10,000 next target pic.twitter.com/3KLgjUu7Xe
–Olivier Isaacs (@oliverzok) May 21, 2024
Regardless, the current hype around the Ethereum ETF is believed to be behind the Ethereum bull run, easily pushing the value to $4,000. The Fibonacci level indicates a rise in Ethereum price, where if the trend continues, the value can rise up to $4,749 by the end of the month. Additionally, the approval of the Ethereum Spot ETF can push this value even stronger to $6,000.