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Why did the price of Ethereum increase by 20% today?
The price of Ethereum it has increased by almost 20% in the last 24 hours. This is a positive development for the second largest crypto token, which has so far lagged behind. Ethereum’s price surge is believed to be due to several factors, including the potential approval of the Spot ETF on Ethereum.
The SEC may soon approve Ethereum spot ETFs
Ethereum resurrected on the news that the Securities and Exchange Commission (SEC) may approve Spot Ethereum ETF applications. Before now it was almost certain that the Commission would reject such requests. However, the SEC is now willing to approve these funds on the basis Bloomberg analyst Eric Balchunas says so revelation.
Balchunas revealed in an X (ex Twitter) send that he and his partner Bloomberg analyst James Seyffart were increasing their Spot Ethereum ETF approval odds to 75% (from 25%), having heard that the SEC may likely approve these funds due to “increasingly political issues.” Seyffart also confirmed this development, stating that “things are taking a positive turn with #ethereum Spot ETF approvals this week. Raising our odds to 75%.”
Seyffart further noted in a later X post that 75% approval odds relate to filings 19b-4, with VanEck’s final deadline scheduled for May 23. The SEC will still need to approve S-1 filings before these funds can launch. S-1 approvals could take up to months, meaning it could take some time for these Spot Ethereum ETFs to become active.
However, that didn’t stop Ethereum whales from believing, and this group of investors is another reason why the price of ETH has soared recently. Data from the market intelligence platform shows that these whales purchased over 110,000 ETH ($341 million) between May 19 and 20. This proved to be profitable as the price of Ethereum had been discounted by rumors of a rejection.
It’s time for Ethereum price and Altcoins to make their move
With the recent development that the SEC will likely approve Ethereum Spot ETFs, Ethereum and other altcoins they appear poised to make significant upward moves. Cryptographic analyst Michaël van de Poppe predicted that the Ethereum Spot ETF news would trigger a rally for Ethereum and altcoins.
While explaining why he swapped his Bitcoin holdings for Altcoins, Van de Poppe suggested that Ethereum (and other altcoins) would likely see a bullish reversal once the news about the Ethereum Spot ETFs denial broke as the crypto token had already been priced into this news.
He added that things could even get better if the news turns out to be better than people expect, as is currently the case with the SEC looking increasingly likely to approve these funds.
In the meantime, crypto analyst Javon Marks predicted that an Ethereum breakout will kick off the altcoin season. This already appears to be the case, as other altcoins have seen notable price increases over the past 24 hours thanks to the second-largest crypto token by market cap.
Featured image from Dall.E, chart from Tradingview.com