Bernstein Predicts Key Level for Ethereum (ETH) Amid Market Shifts

• Ethereum has recently experienced a significant surge due to the increasing likelihood of ETF approvals.
• Additionally, there are signs of a supply squeeze as a massive Ethereum reserve is locked for staking.
• Analysts suggest that a supply shock could push ETH prices above $4,000, with Bernstein analysts predicting a 75% increase following ETF approval.

Discover the latest developments in Ethereum’s market dynamics, including potential ETF approvals and their impact on ETH prices.

Bernstein Predicts 75% Increase in ETH Post-ETF Approval

As you may have followed on CoinOtag, the potential approval of Ethereum ETFs is currently dominating market discussions. There is considerable excitement and speculation surrounding the U.S. Securities and Exchange Commission (SEC) potentially approving spot Ethereum ETFs. On Monday, two leading analysts from Bloomberg Intelligence raised the probability of ETH ETF approval from 25% to 75%, generating significant buzz. Subsequent reports from the SEC have further supported this likelihood, leading to a strong rally in Ethereum.

BlackRock and Bitwise Update Spot Ethereum ETF Applications

Leading asset managers BlackRock and Bitwise have taken a significant step toward obtaining approval for spot Ethereum ETFs. Both firms have submitted updated applications to the SEC, responding to the agency’s request for additional information during the upcoming approval process. This move aims to capitalize on the SEC’s evolving stance on crypto-based ETFs. Bitwise Asset Management joins BlackRock in the race to secure a spot ETH ETF, having also submitted a revised application in line with the SEC’s requirements.

Staked Ethereum Exceeds $121 Billion

According to on-chain data monitoring tool Nansen, there are currently 32.5 million ETH staked, representing approximately 27% of Ethereum’s total supply. At current market prices, this staked ETH is valued at an astonishing $121 billion. Nansen compared this figure to Solana’s fully diluted valuation (FDV) of $103 billion to provide context. The significant amount of staked Ethereum has sparked discussions about a potential supply shortage, which could have far-reaching implications for the market.

In a post on X, Nansen further elaborated on the dual outcomes dependent on market demand. The analytics firm stated, “If an ETH ETF is approved and there is demand either in anticipation of or following the approval, this would be positive.” The platform suggested that the approval of a spot Ethereum ETF could significantly increase demand for crypto, further constraining supply and potentially driving prices higher.

Conclusion

The potential approval of Ethereum ETFs by the SEC has generated considerable excitement and speculation in the market. With leading asset managers like BlackRock and Bitwise updating their applications, the likelihood of approval appears to be increasing. Additionally, the substantial amount of staked Ethereum points to a potential supply squeeze, which could drive prices higher. Investors should stay informed about these developments as they could have significant implications for the future of Ethereum and the broader crypto market.