The significance of Ethereum ETF approval and subsequent trends

The fact that ETH is now recognized as a commodity is great news not only for ETH, but also for the entire cryptocurrency space. This means that institutions will now buy ETH through spot ETFs.

But the problem is that this will not happen immediately. The SEC just approved the 19b-4 application, but it still needs to get S-1 approval. According to James Seyfartt of Bloomberg, this may take a few weeks or more. So if the ETH ETF follows the same script as the BTC ETF, we may see a 10-15% pullback to around 3k-3.2k before the ETH ETF actually starts trading. The next few days/weeks may be a sideways and boring market

But don't underestimate ETH, once trading starts, it will rebound strongly. Remember, ETH's market cap is only a quarter of BTC. So if buyers enter the market with the same energy as BTC, Ethereum will usher in a bigger breakthrough. It will easily break through $5,000 in my opinion. So, I would suggest that if a pullback occurs before the ETF trading starts, then it could be a good opportunity to buy ETH before the next leg up. The volume after the S-1 approval will be the real tell. If we see billions of dollars flowing in from institutions like we have seen with BTC, then ETH will likely break to new all-time highs.