Why did Ethereum price escalate by 20% today?

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Ethereum price it has increased by almost 20% in the last 24 hours. This is a positive development for the second largest crypto token, which has been lagging until now. The surge in Ethereum prices is believed to be due to several factors, including Ethereum’s potential approval Spot Ethereum ETFs.

The SEC may soon approve spot Ethereum ETFs

Ethereum surged in value following the news that Securities and Exchange Commission (SEC) could approve Spot Ethereum ETF applications. Until now, it was almost certain that the Commission would reject these proposals. However, the SEC is now open to approving these funds based on Bloomberg analyst Eric Balchunas revelation.

Balchunas Revealed on X (formerly Twitter) post that he and his colleagues Bloomberg analyst James Seyffart increased their odds of approval of the Spot Ethereum ETF to 75% (from 25%) upon hearing that the SEC could possibly approve these funds due to “an increasingly political issue.” Seyffart also confirmed this development, stating that “things are looking up with the #ethereum ETF Spot approval this week. We escalate our chances to 75%.

Seyffart remarked further in the next one Post X that a 75% chance of approval applies to 19b-4 applications, and VanEck’s deadline is May 23. The SEC will still need to approve S-1 filings before the funds can be launched. S-1 approval can take up to months, which means it could be some time before Spot Ethereum ETFs launch.

But it didn’t stop Ethereum whales believe it, and this group of investors is another reason why the price of ETH has recently skyrocketed. Data from the market intelligence platform shows that these whales bought over 110,000 ETH ($341 million) between May 19 and 20. This proved profitable as Ethereum was priced based on rejection rumors.

It’s time for a move in the price of Ethereum and Altcoins

With the recent news that the SEC is likely to approve Spot Ethereum ETFs, Ethereum and other altcoins they look poised to make significant upward moves. Cryptocurrency analyst Michaël van de Poppe predicted that news about Spot Ethereum ETFs would trigger a surge in Ethereum and altcoin prices.

Explaining why he converted his Bitcoin holdings to Altcoins, Van de Poppe he suggested that Ethereum (and other altcoins) will likely see a bullish reversal when the news of Ethereum Spot ETFs being denied is released because the crypto token has already been priced in on that news.

He added that things could get even better if the news turns out to be better than people expect, which is currently the case with the SEC increasingly likely to approve these funds.

Meanwhile, cryptocurrency analyst Javon Marks predicted that an Ethereum breakout would spark a stock market altcoin season. This appears to be the case considering how other altcoins have seen significant price increases over the past 24 hours thanks to the second-largest crypto token by market capitalization.

ETH price increases towards $4,000 | Source: ETHUSD on Tradingview.com

Featured image from Dall.E, chart from Tradingview.com


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