QCP Report Hint Ethereum 60% Price Rally Ahead As Ether ETF Approves

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The approval of a spot Ether (ETH) exchange-traded fund (ETF) in the U.S. could be a game-changer for the crypt market. With the SEC’s decision approaching, investors and analysts are predicting a 60% price surge for Ethereum. As buying activity surges and market sentiment turns bullish, the crypto community eagerly anticipates what could be a pivotal moment for Ethereum.

Ethereum ETF On The Way!

The U.S. Securities and Exchange Commission (SEC) is set to decide on a spot Ether ETF by May 23. This approval would be a major event, signaling a change in U.S. crypto regulation.

Although many in the crypto community doubted the SEC would approve such an ETF, but recent updates and amendments from the SEC to Ether ETF issuers to update their 19b-4 filings ASAP.

Surge in ETH Buying Activity

Investors believe that a spot Ether ETF will lead to a significant price increase for ETH, attracting new money from traditional markets. However, on-chain analytics firm CryptoQuant reported a spike in buying activity, with holders purchasing over 100,000 ETH in spot markets recently, the highest level since September 2023.

Further CryptoQuant notes that traders are increasingly gaining more exposure to ETH compared to Bitcoin. This marks the largest daily spot buying from ETH permanent holders in 2024. However, the influx of 62,000 ETH to exchanges suggests potential price volatility in the coming days, as high exchange flows are often linked to significant price swings.

This buying frenzy followed reports of a favorable decision and analysts boosting approval odds from 25% to over 75%.

Increased Institutional Interest

Meanwhile, Open interest in ether-tracked futures soared to a record $14 billion, representing 67% of Bitcoin’s open interest. This level is unusually high, reflecting growing investor interest in Ethereum.

The Chicago Mercantile Exchange (CME), popular with institutional investors, saw ether futures hit a record $2.85 billion in trading. Additionally, ether options traded a record $216 million.

ETH Price Analysis

As of now, Ethereum is trading at $3,918, reflecting a 5.6% surge in the last 24 hours, with a market cap of $452 billion. However, Ether needs to surpass the next key resistance at $4,050 to surge higher. Meanwhile, the long-term prospects are positive, with potential targets of up to $5,000 within a month.

On the flip side, short-term predictions suggest possible rejections around the current resistance and a potential test at $3,600.