Ethereum
Chart of the day – Ethereum (05/23/2024)
Ethereum gains 0.70% today, moving back above $3,800. This week could be crucial for the cryptocurrency market due to several important catalysts.
One of them was yesterday’s Nvidia results, which not only met expectations, but even exceeded them. This was somewhat necessary to continue the bull market in the AI sector and broader technology companies. The importance of Nvidia’s report for the markets was confirmed by the reaction of the indices following the publication, which set new all-time highs. In the cryptocurrency market, we also observed a rebound, albeit quite moderate.
Another catalyst that could be a deciding factor in shaping market sentiment in the coming weeks is the SEC’s final decision regarding Ethereum spot ETFs. Here are some important points from recent days:
- BlackRock files updated Form 19b-4 for its Ethereum spot ETF.
- The SEC has notified exchanges that it is considering approving Ethereum spot ETFs and is expediting the review process, with potential approval by Thursday.
- Standard Chartered is 80% to 90% confident in the approval of the Ethereum ETF this week, forecasting ETH price targets of $8,000 by 2024 and $14,000 by 2025.
- Grayscale has removed staking language from its Spot Ethereum ETF filing, similar to recent changes made by other issuers like Fidelity.
The market reaction to an Ethereum ETF could be entirely different than in early January following the acceptance of a Bitcoin ETF. In the case of Bitcoin, the decision itself was the number one topic in the media, and successful and widespread discussions with the SEC made the probability of acceptance high. For Ethereum, the probability was only around 20% just a few days ago, and the market simply did not believe in acceptance. However, everything has changed in recent days, as has the attitude of the SEC. Despite this, the price of Ethereum is still more than 20% below its all-time highs, and the recent rise is just a reaction after the significant declines seen in April and May. Therefore, the acceptance of Ethereum ETFs does not have to be another “sell the news” type event, as was the case for Bitcoin. However, the risk of rejection still exists, and one thing is certain: market volatility in the coming days.
Source: xStation 5