🚨 Ethereum ETF Approved! 🚨$
So what does this mean for #Ethereum , #Bitcoin , and the rest of the Altcoins?
I’ll break down what we know so far, go over some ETH Technical Analysis, and drop my Ethereum price prediction for the end of the year.
The Crypto Bull Run continues🐂
Let’s dive in🧵👇
1/x The Ethereum ETF could be a game-changer, possibly more significant than the Bitcoin ETF.
Two key aspects:
1️⃣ Ethereum's regulatory status: Bitcoin is confirmed as a commodity, but Ethereum's classification is still unclear.
2️⃣ Approval will likely boost confidence and accessibility, solidifying its status in the US market.
2/x The SEC's stance on Ethereum is still ambiguous. Gensler has avoided clear statements on whether Ethereum is a commodity, security, or something else.Lawsuits have mentioned ETH as a commodity, but the SEC has remained silent.
3/x Recent developments added to the confusion.
A report showed the SEC viewed Ethereum as a security for over a year.
In March, the SEC targeted ConsenSys, MetaMask’s parent company, and other wallet providers for offering staking services, alleging they dealt with unregistered securities.
4/x The Ethereum ETF approval will settle this debate.
The approval will indicate Ethereum is not considered a security, paving the way for substantial institutional investment.
Similar to Bitcoin, this could trigger a major market shift.
5/x I had been optimistic about the Ethereum ETF getting approved mid-year.
Here’s why:
1️⃣ BlackRock had filed their Ethereum spot ETF. They have a 99.8% approval rate for ETFs with 577 approvals and only one rejection.
2️⃣ The Grayscale Ethereum Trust discount ratio had been closing, now at just a 6.6% discount, suggesting investor confidence.
6/x The PolyMarket prediction for Ethereum ETF approval by May 31st had surged from 10-20% to 70%, with $11 million wagered on this outcome.
7/x The process involves two filings: the 19b-4 and the S1 approval.
The 19b-4 indicates the SEC's approval, while the S1 allows trading to commence.
There is most likely to be a delay between approval and the start of trading.
8/x My Ethereum price prediction for the second half of this year:
Expect a lot of volatility in the upcoming weeks.
I’m not betting on ETH long immediately, especially now that the ETF news is widely known.
9/x We might see Ethereum dip back to the $3,000 range, presenting a better entry point.
Reflecting on the Bitcoin ETF approval, Bitcoin dropped from $47k to $40k before rallying to $70k.
Institutions take a few months to accumulate their positions, leading to gradual inflows.
10/x Hence, I’m not rushing to buy Ethereum right now.
I expect market choppiness for the next few weeks, potentially longer if the S1 approval and Ethereum ETF trading don’t start immediately.
I plan to hold my spot Ethereum position, awaiting a lower entry point around $3,000.
11/x In the long term, I believe we will see a significant reversal in Ethereum's price relative to Bitcoin and the broader market.
For a true bullish signal, we need the ETH/BTC ratio to break above the 0.055 resistance level.
If this occurs, ETH could outpace BTC by 30-50% by year-end.
12/x This would mean Ethereum could reach at least $6,000 by year-end, a 60% increase from current levels.
This estimate is based on Bitcoin reaching $100,000, representing a 44% gain. Using a 1.3-1.5x multiplier, we arrive at a 60% gain for Ethereum.
13/x Predictions are inherently uncertain, but given Ethereum's relative price suppression and ETF approval, I am confident in its strong performance in the latter half of the year.
14/x The Ethereum ETF's approval is a pivotal moment for the crypto market.
It promises to bring significant institutional investment and could propel Ethereum to new heights.
How are you positioning yourself for the Ethereum ETF?
Share your thoughts and strategies below! 👇
