The U.S. Securities and Exchange Commission (SEC) quickly approved Spot Ethereum ETFs. Brokers at QCP Capital say this could cause the price of ETH, Ethereum’s main cryptocurrency, to reach $5,000 by the end of the year. A new report from a Singaporean company says that ETH should aim for $4,000 as its first goal. Many people think of this level as a “natural short-term target.”
QCP Capital analysts said that ETH could hit $5,000 if the SEC approves it, which no one saw coming. There is a good chance that the market will drop sharply, maybe back to $3,000. Many people have backed this price range, especially the $2,900 mark.
Ethereum Market Reacts to Potential ETF Approval
Already, the market has been changed by talk of a possible acceptance. On Tuesday, Ethereum’s price rose to $3,650, an almost 20% rise. Since no one was interested in spot ETH ETFs, the trading company said that ETH could “easily” return to its recent highs. They also said that an unexpected approval could cause a short squeeze, increasing the price of ETH.
By distinguishing between ETH and staked Ethereum, the SEC could change how it polices cryptocurrencies. Even though everything looks good, they might call staked ETH a risk. Google’s Alex Thorn, who is in charge of research, said this plan would work with the SEC’s present cases and investigations. The SEC could still follow its rules and let ETH ETFs be used.
The crypto world is very excited about what the SEC will say. If spot Ethereum ETFs are accepted, though, the market could change a lot in the next few months.
