Ethereum Price Prediction 22 May: ETH Blasts Toward $4,000 as ETF Deadline Approaches – Time to Buy?
ETH has lifted by 2% in the past 24 hours, with the Ethereum price rising past $3,700 on a day when the crypto market as a whole is basically flat.
If the SEC does approve the ETFs, we’re likely to see the Ethereum price continue its upwards trajectory for several days, if not weeks.
ETH’s price chart shows some indication that the coin may correct a little today, even if good news tomorrow could push it back up again.
Its indicators have flagged slightly, with the coin’s relative strength index (purple) sliding from 90 late on Monday night/early Tuesday morning to about 55 today.
At the same time, it looks as though ETH’s price may be about to sink below its 30-day average (orange), which is flattening out in a sign of declining momentum.
Yet such a loss of momentum may be temporary, with ETH’s 24-hour volume still highly elevated today at $32 billion.
This indicates strong sustained interest in the token, which is awaiting the deadline tomorrow for several spot-based ETH ETFs.
Of course, investors should be aware that traders and whales will use any spike as an opportunity to dump their holdings, so we may not see a consistent rally in the event of SEC approvals.
Yet as we’ve seen this year with Bitcoin, the approval of ETH ETFs will serve as a big catalyst for the expansion of Ethereum’s market.
Massive volume could flood into ETH in the weeks and months following an approval, potentially pushing its price past $4,000.
And assuming that the Fed will reduce rates later in the year, the market as a whole will become more bullish, further boosting the Ethereum price.
Indeed, this morning has seen the UK announce that its official inflation rate fell to 2.3% in a April, which is very close to the Bank of England’s target rate of 2%.
Assuming that something similar happens in the US, we could certainly see rate cuts soon, helping the Ethereum price.
