The price of Ethereum (ETH) will hit $4,500 before the first spot Ethereum exchange-traded funds (ETFs) start trading. This bold prediction comes from Arthur Cheong, founder and CEO of DeFiance Capital.
Also Read: Experts Don’t Have Confidence in Ethereum Like They Do Bitcoin
The U.S. Securities and Exchange Commission (SEC) approved the 19b-4 filings for eight spot ETH ETFs on May 23. These approvals allow the ETFs to be listed and traded on their respective exchanges. The filings are from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK-21Shares, Invesco Galaxy, and Bitwise.
Ether Will Hit $4.5K Before June 1st
Yesterday, Cheong shared his forecast with his 167,000 followers on X (formerly Twitter), saying, “4.5k before spot ETF goes live for trading [in my opinion].” The approval of the 19b-4 filings is a big deal. However, ETF issuers also need approval for their S-1 filings. Bloomberg ETF analyst James Seyffart noted in a May 20 post that this process could take weeks to months.
“It could be weeks to months before we see S-1 approvals and thus a live ETH ETF,” Seyffart wrote. “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’…”
Also Read: Ethereum Price Prediction: Will ETH Reach $8000 Soon?
The SEC’s unexpected approval of Ether ETFs has shaken the cryptocurrency market. Analysts had low expectations for approval, but things turned around suddenly, sending Ether up by 20%. Former President Donald Trump added to the buzz by announcing that he would accept campaign donations in cryptocurrency.
Technical Analysis
Looking at the ETH/USDt daily chart, we can see that the price has been oscillating between $3,860 and $3,980 over the past day. The Relative Strength Index (RSI) is around the 63.52 mark, indicating strong buying pressure without entering the overbought territory. The 50-period moving average (blue line) is above the 200-period moving average (red line), suggesting a bullish sentiment in the shorter term.
Given this upward trend and sustained buying interest, Ethereum could potentially test higher resistance levels. The immediate resistance is at $3,980, as evidenced by recent peaks. A break above this level could see Ethereum approaching the $4,000 psychological level, which, if surpassed, would open the way to $4,500.
The SEC’s ETF approval came just one day after the House passed the Financial Innovation and Technology for the 21st Century Act (FIT 21). This bill aims to clarify when crypto falls under the jurisdiction of the SEC versus the Commodity Futures Trading Commission (CFTC). Many in the industry see FIT 21 as a landmark victory.
Cryptopolitan reporting by Jai Hamid
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