Sodiq Ganiyu
The possible approval of a spot ETH ETF would enhance the attractiveness of the second-largest cryptocurrency among institutional investors who lean towards more conservative approaches. Ether (ETH), the native token of the Ethereum network, surged past the $3,000 mark for the first time since April 2022 on Tuesday, extending its recent strong performance.
Over the past 24 hours, Ether’s price increased by approximately 1.6%, and it has risen by over 12% in the past week, surpassing the performance of other cryptocurrencies, as per CoinGecko data.
Bitcoin also experienced upward movement, rising by more than 2% in the past 24 hours and nearing the $53,000 mark.
The broader cryptocurrency market has seen positive momentum in 2024, with major tokens trading well above their 2023 levels. Since the beginning of the year, ETH has surged by nearly 30%, outpacing BTC’s 22% advance.
The rally in ETH could persist, with traders eyeing the $3,500 level as the next resistance point, as market participants anticipate the potential approval of spot-based ETH exchange-traded funds (ETFs) by U.S. regulators. Kenny Hearn, Chief Investment Officer at SwissOne Capital, stated in an interview with CoinDesk that levels around $3,150-$3,300 are within reach, with $3,600 being a plausible target in the coming month or so, as altcoins continue to catch up.
A potential ETF approval would enhance ETH’s appeal among institutional investors, similar to the massive allocations seen with the recent introduction of bitcoin ETFs last month. Bernstein, a brokerage firm, indicated on Monday that there is approximately a 50% likelihood of spot ETH ETF approval by May and a near certainty of approval within the next 12 months.
Elijah Idowu
