🚀 Ethereum Rally Pauses at $3.8K — Is SEC's ETF Decision Already Priced In?
Ether (ETH) surged 25% between May 20 and 21, reaching a nine-week high of $3,840. Despite strong confidence in the approval of a U.S. spot Ether ETF by May 23, the price stabilized around $3,750. Is the ETF decision already factored into the price? 🤔
Pending SEC Decision on Spot ETH ETF 🏦
Analysts believe there's a high chance the SEC will approve the spot Ether ETF application from VanEck. This optimism follows the SEC's request for the NYSE and Nasdaq to update their filings. Some say this is a political move, aiming to appeal to crypto supporters.
The SEC's decision will involve five commissioners, with two being pro-crypto and one a vocal critic of the sector. Investors are comparing this to Bitcoin’s (BTC) ETF approval, which saw a 35% price increase over 50 days. However, competition from Grayscale’s $28.7 billion GBTC fund could affect Ether’s demand.
Current Market Sentiment 📈
Ether derivatives data indicates that traders are not overly optimistic. ETH futures typically show an annualized premium of 5-10%, but recently only jumped to 15%, suggesting moderate risk appetite among bulls. This suggests that the potential for further gains remains, as the market hasn’t fully priced in the ETF approval.
In summary, the recent 25% rise in ETH suggests partial anticipation of the ETF approval. Yet, there's still room for more upside, as Ether's current price doesn't fully reflect the possible approval.
💬 Stay tuned for more crypto insights! 👍
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Disclaimer: This post is for informational purposes only and should not be taken as investment advice.
