ethereum (eth) price is soaring ahead of the Securities and Exchange Commission (SEC) decision regarding the Spot eth ETF (exchange-traded fund). Optimism among investors and market observers has increased as the 'King of Altcoins' surpasses the $3,900 mark.
Some analysts believe that this bullish momentum could soon push the price of eth above all set price targets.
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ethereum Soars Amid ETF Approval Expectations
ethereum, the second-largest cryptocurrency by market cap, has seen a significant rally this week. As rumors of eth spot ETF approval emerged this Wednesday, community sentiment towards the asset became extremely bullish.
Previously, Bloomberg experts had claimed that the chances of an ETF approval were slim due to the US government's crackdown on the industry. However, this week's U-turn by the Biden administration generated positive sentiment that x.com/rovercrc/status/1793631717745635823″ target=”_blank” rel=”nofollow”>increase the possibilities at 65-75%.
As a result, ethereum is up an impressive 30.4% from its price seven days ago. The king of altcoins went from trading just below the $3,000 mark to breaking above the $3,900 resistance level at the time of writing.
The community's optimistic expectations continue as several US lawmakers urge SEC Chairman Gary Gensler to approve ethereum ETFs.
As Eric Balchunas reported, a bipartisan group of House lawmakers sent a letter Tuesday to the SEC chairman requesting approval of eth ETFs “and other digital assets.”
According to the letter, members of Congress believe that ETFs backed by digital assets offer “investors a regulated and transparent investment vehicle to gain exposure.” US lawmakers urged the Commission to “maintain a consistent and fair approach when reviewing upcoming applications” for other crypto ETFs.
Are target prices too low?
ethereum has had a remarkable performance in recent days. eth is up 5.6% as the community awaits the SEC's decision.
As noted by several market observers, the eth weekly candlestick is at resting levels not seen since the first half of March. crypto Yoddha highlighted ethereum's historical performance for previous all-time highs (ATH).
According to the chart, the second largest crypto asset went through a 700-day accumulation phase before breaking out and starting the bull run. Similarly, eth seemingly ended a 700-day accumulation period this cycle, which could lead to a rally towards a new ATH, if history repeats itself. The analyst set a target of $15,300 for this cycle.
Likewise, crypto Jelle x.com/CryptoJelleNL/status/1793550981659316388″ target=”_blank” rel=”nofollow”>he pointed that eth broke a multi-month falling wedge pattern. Its recent performance successfully regained the key resistance above the $3,600 mark and is currently testing the $3,900 price range.
The trader believes that if this is the current performance before the approval of eth ETFs, his $10,000 target for this cycle could be “too low.” However, he urged investors to “try not to get caught up in excessive trading.”
He calls the initial response to the decision “hard to know” despite the bullish sentiment. Ultimately, Jelle suggests the community “focus on what you know,” as the long-term picture is much clearer.
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On a similar note, crypto analyst Mikybull x.com/MikybullCrypto/status/1793190768661647675″ target=”_blank” rel=”nofollow”>Point out that eth is repeating the path of 2020 that “triggered the Alts season in 2021.” Because of this, the trader considers the bullish targets for this cycle to be between $9,000 and $11,000.
The SEC's decision regarding eth ETFs will be announced around 8:30 pm UTC on May 23.
Featured image from Unsplash.com, chart from TradingView.com
