Analysts at QCP Capital say the “resounding lack of interest” out there and the approval of spot Ethereum ETF may “easily” pump ETH again to latest highs.
Whereas latest market information signifies a cautious environment amongst traders relating to the potential approval of spot Ethereum exchange-traded funds (ETFs), the surprising approval may set off a brief squeeze leading to ETH reaching its latest highs, analysts warn.
In a latest analysis report, analysts at QCP Capital mentioned the ETH/BTC pair has dropped to ranges not seen since February 2021, suggesting the market is “anticipating a rejection and a non-event.” Nevertheless, QCP Capital notes that Ethereum has demonstrated sturdy assist on the $2,900 degree, defending this worth level a number of instances all year long.
With the present market state, the approval of spot Ethereum ETH may come as a bolt from the blue, triggering a “short squeeze taking us easily back to recent highs,” QCP Capital says. Since January, Ethereum has risen as excessive as $4,066, though it stays beneath its all-time excessive of $4,891 set in November 2021. Given this context, an ETF approval may function a significant catalyst for renewed bullish momentum, probably driving ETH again towards these ranges.
Up to now, nevertheless, there aren’t any clear indicators from the U.S. Securities and Trade Fee (SEC) suggesting an imminent approval of a spot ETH ETF. Bloomberg analyst Eric Balchunas mentioned in a latest X publish that the SEC is likely to be contemplating Ethereum as a safety of their decision-making course of, indicating that the percentages of approval are “slim to none.”
Nonetheless, David Han, an analyst at crypto trade Coinbase, says the market “may be underestimating the timing and odds of a potential approval,” including that the second-largest cryptocurrency by market worth “may yet have the potential to surprise to the upside in the coming months […].”
The SEC is predicted to decide on VanEck’s utility for a spot Ethereum ETF on Could 23.
