- Ethereum (ETH) is currently in the spotlight amid the growing hype surrounding spot ETF approval.
- Bernstein Analyst Gautam Chhugani has predicted that Ethereum’s price is on track to retest and surpass its all-time high (ATH).
- Chhugani is optimistic that Ethereum can experience a significant rally if the spot ETH ETF product is approved by the United States Securities and Exchange Commission (SEC).
Discover the latest developments in Ethereum’s market potential and the anticipated impact of spot ETF approval on its price trajectory.
Bullish Sentiment for Ethereum
At the time of writing, Ethereum is trading at $3,778.37, marking a 2.75% increase over the past 24 hours. The cryptocurrency surged to a high of $3,943.55 within the same period, indicating a strong push towards the psychological level of $4,000.
Potential for a Major Rally
According to Chhugani, Ethereum is poised for a 75% rally from its current level if the spot ETH ETF product receives approval from the SEC. In his best-case scenario, he projects that the price of Ethereum could soar to $6,600 in the near term. This optimism is fueled by the potential for a massive inflow of capital into the market, which would significantly reduce the coin’s supply on exchanges.
Historic Moment for Ethereum
Despite being the second-largest digital currency by market capitalization, the pursuit of a spot Ethereum ETF has been a challenging endeavor. However, with VanEck’s application set for a decision, Ethereum could join Bitcoin in making history if approval is granted. The approval of a spot Ethereum ETF would likely lead to a substantial increase in demand, further driving up the price.
Supply and Demand Dynamics
Current data indicates that Ethereum’s exchange volume is at a three-year low of 13.7 million ETH. This shortage in supply, combined with the potential demand surge from a spot Ether ETF, suggests a significant upside for Ethereum’s price. If the ETF is approved, the resulting capital inflow could create a supply crunch, pushing prices even higher.
Conclusion
In summary, the potential approval of a spot Ethereum ETF by the SEC could be a game-changer for the cryptocurrency. With analysts predicting a substantial rally and current supply dynamics favoring a price increase, Ethereum is positioned for a historic moment. Investors and market participants should closely monitor developments as the decision date approaches, as the implications for Ethereum’s market trajectory could be profound.
