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Potential Rally to $4,500 for Ether as ETF Approval Nears, Predicts DeFiance Capital Founder

ByDayne Lee

May 28, 2024
Potential Rally to $4,500 for Ether as ETF Approval Nears, Predicts DeFiance Capital Founder

Potential Rally to $4,500 for Ether as ETF Approval Nears, Predicts DeFiance Capital Founder

Arthur Cheong, the founder and CEO of DeFiance Capital, has suggested that Ether (ETH) could reach the $4,500 mark prior to the commencement of trading for the first spot Ether exchange-traded funds (ETFs). This prediction aligns with recent regulatory approvals that have heightened expectations within the crypto community.

As of the latest data, Ether was trading at $3,903, marking a 2.57% increase in the last 24 hours. Cheong’s forecast, shared with his 167,000 followers on X, implies a potential 15% increase from current levels to the target of $4,500.

  • Ether’s Current Price: $3,903
  • Predicted Price: $4,500
  • Required Growth: Approximately 15%

SEC’s Role in ETF Approval

On May 23, the U.S. Securities and Exchange Commission (SEC) approved the 19b-4 filings for eight spot Ether ETFs, allowing them to be listed on various exchanges. This group includes major financial institutions like VanEck, BlackRock, and Fidelity, among others. While this is a significant step, the approval of S-1 filings is still pending, which could take additional time.

  • Represents initial regulatory acceptance.
  • Sets the stage for the subsequent approval of S-1 filings.

James Seyffart, a Bloomberg ETF analyst, noted that it might take weeks to months for S-1 approvals, which are essential for the ETFs to become operational. The anticipation surrounding these approvals is considered a substantial catalyst for Ether’s price movements.

Resistance and Market Catalysts

Ether currently faces considerable resistance at the $4,000 and $4,100 levels. A breakout above $4,100 could trigger the liquidation of over $500 million in leveraged short positions, providing further upward momentum.

  • Key Resistance Levels:
    • $4,000
    • $4,100
  • Potential Impact of Breaking Resistance:
    • Significant short squeeze leading to rapid price increases.

Long-Term Outlook

The broader implications of an operational Ether ETF are profound, with Andrey Stoychev from Nexo suggesting that such developments could propel Ether’s price to $10,000 by the end of 2024. This would parallel Bitcoin’s trajectory following its ETF approvals.

  • Potential High:
    • $10,000 by end-2024
  • Comparative Analysis:
    • Similar to Bitcoin’s post-ETF performance

With the regulatory landscape evolving and Ether showing robust market dynamics, the possibility of Ether reaching $4,500 before the ETFs are fully operational remains plausible. This scenario is backed by strong community sentiment, strategic institutional movements, and the transformative impact of potential ETF approvals.

Featured image credit: Jievani via Pexels

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.

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