The price of Ethereum (ETH) is soaring ahead of the Securities and Exchange Commission’s (SEC) decision regarding the Spot ETH ETF (exchange-traded fund). The optimism of investors and market observers increased when the “king of altcoins” crossed the $3,900 mark.
Some analysts believe that this bullish momentum could soon push the ETH price above all set price targets.
Ethereum Rise Amid Expectations for ETF Approval
Ethereum, the second-largest cryptocurrency by market capitalization, has seen significant growth this week. As rumors about the approval of spot ETFs for ETH on Wednesday grew, community sentiment towards the asset became extremely bullish.
Previously, Bloomberg experts assured that the chances of the ETF being approved were slim due to the US government’s attacks on the industry. However, the Biden administration’s U-turn this week has sparked positive sentiment increased 65-75% chance.
As a result, the price of Ethereum increased by an impressive 30.4% compared to the price from seven days ago. As of this writing, the altcoin king has gone from trading just below the $3,000 level to breaking above the $3,900 resistance level.
Optimistic community expectations persist as several U.S. lawmakers urge SEC Chairman Gary Gensler to approve Ethereum ETFs.
As Eric Balchunas reported, 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.”
The letter says members of Congress believe digital asset-backed ETFs offer “investors a regulated and transparent investment vehicle to gain exposure.” US lawmakers called on the Commission to “maintain a consistent and fair approach as it reviews upcoming proposals” for other cryptocurrency ETFs.
Are target prices too low?
Ethereum has performed exceptionally well over the past few days. ETH rose 5.6% in anticipation of the SEC’s decision.
As several market observers have noted, ETH’s weekly candle is at levels not seen since the first half of March. Crypto Yoddha highlighted Ethereum’s historical performance during previous all-time highs (ATH).
As the chart shows, the second-largest crypto asset went through a 700-day accumulation phase before breaking out and embarking on an upward run. Similarly, ETH has apparently completed its 700-day accumulation period for this cycle, which could lead to a rally towards recent ATH if history repeats itself. The analyst has set a target of $15,300 for this cycle.
Likewise Crypto Jelle indicated that ETH broke out of a multi-month falling wedge formation. Its recent performance has successfully cleared key resistance above the $3,600 level and is currently testing the $3,900 price range.
The trader believes that if this is the current performance ahead of ETH ETF approval, his $10,000 target for this cycle may be “too low.” But he urged investors to “try not to get caught up in overtrading.”
He believes the initial reaction to the decision is “difficult to gauge” despite the bullish sentiment. Ultimately, Jelle suggests the community “focus on what you know” because the long-term prospects are much brighter.
Crypto analyst Mikybull speaks in a similar tone draws attention that ETH is repeating the 2020 track that “kicked off the 2021 Alts season.” For this reason, the trader believes that the bull target for this cycle is $9,000-$11,000.
The SEC’s decision regarding ETH ETFs will be announced on May 23 at approximately 20:30 UTC.
Featured image from Unsplash.com, chart from TradingView.com
