Rising optimism for the approval of at least one spot Ethereum ETF in the US has significantly increased momentum in the cryptocurrency market. The upward momentum triggered the liquidation of investors who held short positions, especially those who took positions expecting a decline.
Spot Ethereum ETFs Prospects Hit Investors
Bloomberg analysts recently raised the likelihood of at least one spot Ethereum ETF approval in the US from 20 percent to 75 percent, creating a positive tone in the market. This expectation led to significant gains, with Bitcoin (BTC) rising above $71,000 for the first time since early April and Ethereum (ETH) rising by up to 20 percent to $3,700.
Significant increases were also recorded in other major altcoins. According to the data of crypto data and price platform CoinGecko, Ripple's XRP, Cardano's ADA, Solana's SOL and Dogecoin's DOGE increased by over 5 percent. This surprise upward price movement resulted in over $260 million in market-wide short position liquidations, the largest since February 28. According to data from Coinglass, there were losses exceeding $100 million in short positions in ETH. In contrast, Bitcoin saw a loss of just over $99 million in short positions.
Price May Rise to 4 Thousand Dollar Threshold
Some investors are predicting further price rises for ETH. Singapore-based QCP Capital suggested that an ETF approval could push the price of ETH closer to $4,000, while a rejection decision could push the price to $3,000. The expedited updates requested by the SEC for 19b-4 filings indicate that we are closer to approval.
