Ethereum (ETH) Rally Stalls: Insights from DeFiance and QCP Analysts Revealed!

• The recent approval of the SEC’s spot Ethereum ETF has caused ETH to surge close to the $4,000 mark.
• However, opinions differ on the future trajectory of Ethereum’s price.
• DeFiance Capital’s founder predicts ETH will reach $4,500 before the ETF launches, while QCP Capital analysts are more cautious.

Explore the latest developments in Ethereum’s market dynamics following the SEC’s spot ETF approval, with insights from leading financial analysts.

SEC’s Spot Ethereum ETF Approval Sparks Market Reaction

The recent approval of the SEC’s spot Ethereum ETF has sent shockwaves through the crypto market, pushing ETH close to the $4,000 threshold. This landmark decision marks a significant milestone for Ethereum, as it opens up new avenues for institutional investment and broader market participation. The ETF approval is seen as a major endorsement of Ethereum’s potential, driving investor sentiment and market activity.

Arthur Cheong: Ethereum Could Hit $4,500 Before ETF Launch

According to Arthur Cheong, founder and CEO of DeFiance Capital, Ethereum’s price could soar to $4,500 before the first spot Ethereum ETFs officially begin trading. Cheong’s optimistic forecast is based on the anticipation that the ETF approval will attract substantial institutional interest, leading to increased buying pressure. “The target is $4,500 before the spot ETF goes live,” Cheong stated, suggesting a potential 15% increase from current levels.

The SEC’s approval on May 23rd of eight spot Ether ETF issuers’ 19b-4 applications allows these products to be listed and traded on their respective exchanges. However, Bloomberg ETF analyst James Seyffart notes that while this approval is a positive sign, ETF issuers still need to secure S-1 approvals, which could take months. Seyffart commented, “Seeing S-1 approvals and thus a live ETH ETF could take weeks or months… If we see these theoretical approvals this week, it should mean S-1 approvals are a matter of ‘when’ not ‘if’.”

QCP Capital: No Significant Rise Expected Before S-1 Approvals

QCP Capital analysts hold a more cautious view, predicting that Ethereum’s price will not see a significant rise until the SEC grants S-1 approvals. Despite the recent surge to nearly $4,000 following the spot ETF approval, QCP Capital believes that the lack of S-1 approvals could limit further gains. The analysts highlight that Ethereum’s price movement during the Asian trading session, influenced by comments from U.S. presidential candidate Donald Trump, indicates market and investor expectations for a rise. However, they emphasize the importance of S-1 approvals for a substantial breakout.

Andrey Stoychev: ETF Approval Could Propel ETH to $10,000

Andrey Stoychev, head of brokerage at Nexo, offers an even more bullish outlook, suggesting that the ETF approval could drive Ethereum’s price to $10,000. Stoychev argues that the current bull cycle, fueled by the ETF approval, could be the strongest price catalyst for Ethereum. He explains, “ETH ETFs in the U.S. and similar products in Asia could help the asset reach $10,000 by the end of 2024, mirroring Bitcoin’s post-ETF performance.”

CoinGlass data indicates that a move above $4,100 could trigger the liquidation of over $500 million in leveraged short positions across all exchanges, potentially driving ETH higher. However, Ethereum faces significant resistance at the $4,000 and $4,100 levels, which it must overcome to sustain its upward momentum.

Conclusion

The SEC’s spot Ethereum ETF approval has undoubtedly stirred the crypto market, with varying predictions on ETH’s future price movements. While some analysts foresee substantial gains before the ETF launches, others urge caution until further regulatory approvals are secured. Investors should closely monitor these developments, as they will play a crucial role in shaping Ethereum’s market trajectory in the coming months.