Ethereum (ETH), the second-largest cryptocurrency in the world, has had a solid bullish spike, rising 20% over the last day. There is growing hope that a spot Ethereum ETF will be approved, which is the reason for this increase.
The price of Ethereum (ETH) rises to $4,000
With a $443 billion market capitalization, the price of Ethereum (ETH) is currently 19.64% higher at $3,692 as of the time of writing. By doing this, ETH’s weekly gains have increased to almost 25%. However, the amount of ETH traded daily has also increased dramatically, by 264%, to above $36.24 billion.
This occurred on Monday when the U.S. SEC compelled the issuer to amend its 19b-4 paperwork for the Ethereum ETF slot. Market observers had little chance of the SEC approving a spot Ethereum ETF until last weekend. This was mainly due to the issuers’ and the SEC’s need for more communication.
But in light of yesterday’s events, market observers have raised the chances of a spot Ether ETF approval from 25% to over 75%. Well-known cryptocurrency researcher Michael van de Poppe pointed out:
“The chances of denial on the spot Ethereum ETF have decreased by a mile. Perhaps there’s a delay, but the chances of an approval before August is significant. The bull market is here”.
The first decision about the VanEck spot Ethereum ETF will be made by Thursday, May 23. As a result, we should anticipate some price volatility. Positive developments can drive the price of ether to $4,000.
ETH Whales Are Back at Work
The whales of Ethereum have returned to their prey, having amassed 110,000 ETH in the last twenty-four hours, valued at an incredible $341 million.
In addition, the ETH/BTC pair has increased significantly despite the robust Bitcoin gain. Consequently, a few market participants have begun trading their Bitcoins for Ethereum.
Investor James Fickel (@jamesfickel) has borrowed 350 WBTC ($25 million) from Aave and converted it into 6,905 ETH to long the ETH/BTC trading pair as the likelihood of a spot Ethereum ETF approval rises. Since the Bitcoin ETF debuted on January 10, Fickel has kept a long position in ETH/BTC.
Fickel has borrowed 2,741 WBTC ($150.3 million) from Aave and exchanged it for 50,693 ETH at a rate of 0.05408.
