Analysts from QCP Capital have highlighted a significant lack of market interest, which might change if the U.S. Securities and Exchange Commission (SEC) approves a spot Ethereum ETF. Such approval could swiftly elevate Ethereum to its previous high prices. The recent analysis points out that the ETH/BTC ratio has fallen to its lowest since February 2021, hinting at market expectations of a rejection.
Despite these anticipations, Ethereum maintains robust support at the $2,900 mark, consistently holding this value throughout various market tests this year. Should the SEC unexpectedly approve the ETF, it might lead to a short squeeze, potentially propelling Ethereum’s price back to its recent peak levels. Earlier this year, Ethereum’s price reached up to $4,066, although it has not surpassed its all-time high of $4,891 from November 2021.
Potential Surprises in Ethereum’s Future
Bloomberg’s Eric Balchunas suggests that the SEC may view Ethereum as a security, which complicates the approval process for an ETF. However, David Han from Coinbase argues that the market could be underestimating the chances of approval. He believes that Ethereum might surprise investors positively in the upcoming months.
The decision on VanEck’s application for a spot Ethereum ETF is due by May 23. This decision is highly anticipated and could act as a major catalyst for Ethereum, possibly driving its price towards higher levels once more. Analysts and investors alike are closely monitoring the SEC’s moves, as any approval could significantly impact Ethereum’s market dynamics.