The price of Ether could rally to $4,500 before the official approval of the first spot Ether exchange-traded funds (ETFs), according to Arthur Cheong, founder and CEO of DeFiance Capital.
In a May 26 X post, Cheong informed his 167,000 followers: “4.5k before spot ETF goes live for trading [in my opinion].”
As of 10:56 am UTC, Ether was trading at $3,903, up 2.57% in the previous 24 hours.
If Cheong’s prediction proves accurate, Ether’s price would need to increase by over 15% to reach the $4,500 mark, based on data from CoinMarketCap.
This prediction follows the U.S. Securities and Exchange Commission (SEC) approval on May 23 of the 19b-4 filings for eight spot Ether ETF issuers, allowing these ETFs to be listed and traded on their respective exchanges.
The first batch of approved ETFs includes filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.
While the 19b-4 filing approval is a positive sign from the SEC, ETF issuers still need approval for their S-1 filings, which could take months.
Bloomberg ETF analyst James Seyffart noted in a May 20 X post: “It could be weeks to months before we see S-1 approvals and thus a live ETH ETF… That said, if we’re correct and we see these theoretical approvals later this week. It should mean that S-1 approvals are a matter of ‘When’ not ‘If’…”
Ether’s price has shown strong upward movement following these developments related to spot Ether ETFs.
A potential rally to $4,500 seems plausible with further positive news, bringing Ether’s price within 8% of its all-time high of $4,891, reached on Nov. 16, 2021.
However, ETH faces significant resistance at the $4,000 and $4,100 levels.
Moving above $4,100 would liquidate over $500 million worth of leveraged short positions across all exchanges, according to CoinGlass data.
According to Andrey Stoychev, head of prime brokerage at Nexo, the ETF approval could be a major price catalyst during the current bull cycle, potentially propelling Ether’s price to $10,000.
Stoychev told Cointelegraph: “ETH ETFs in the U.S. and similar products in Asia could be the driver that helps the asset reach $10,000 by end-2024, catching up with Bitcoin’s performance post-ETF.”
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