Ethereum’s price surged to a 40-day high of $3,719 on May 21, 2024, marking a 30% increase over the past week. This significant rise in price is indicative of the bullish staking trends and provides a glimpse into what can be expected after the potential approval of spot ETFs.
According to analysts at Bloomberg, there is a 75% likelihood that the US Securities and Exchange Commission (SEC) will approve the ETH spot ETF this week. Major digital asset management companies, including VanEck and BlackRock, have recently submitted filings, putting the SEC under pressure to make a decision before the May 23/24 deadline.
Interestingly, the price of Ethereum has been soaring since Bloomberg Senior ETF analyst Eric Balchunas broke the news of the impending ETF approval on Monday. In fact, Ethereum has outperformed Bitcoin in May 2024 by a significant margin.
Ethereum’s price reached a 65-day high of $3,811 in the early hours of May 21, resulting in a gain of 36.54% for the month of May. A closer look at the chart reveals that ETH has surpassed Bitcoin in terms of monthly growth.
Between May 1 and May 21, Ethereum’s price increased by 36.54%, while Bitcoin’s price only rose by 25.1%. This highlights the current preference of crypto investors to take long positions on Ethereum against Bitcoin in anticipation of the SEC’s approval.
There are also speculations that ETH ETFs will attract more demand than BTC ETFs due to the added passive income generated by Ethereum’s Proof-of-Stake protocol. Recent trends on the beacon chain indicate that investors are already strategically positioning themselves to benefit from the influx of funds into ETH ETFs.
Since the beginning of the week, Ethereum investors have staked an additional 25,184 ETH, bringing the total stake to 32,154,810 ETH. With the current price, these newly-staked ETH coins are valued at approximately $95 million. This suggests that the majority of holders are willing to hold out for further gains despite the current peak in ETH prices.
Furthermore, some analysts predict that BTC ETF holders may switch to Ethereum ETFs once they are approved, considering the added passive income from staking. If this scenario unfolds, ETH staking contracts could experience a prolonged trend of increasing deposits, potentially intensifying bullish pressure on Ethereum’s price.
At the time of writing on Tuesday, Ethereum’s price is trending above the $3,745 mark. The $95 million surge in Ethereum 2.0 staking deposits this week indicates that bulls are aiming for a breakout above $4,000.
According to IntoTheBlock’s data, the next major resistance lies at the $3,900 level. However, there is a possibility that some investors who have been holding Ethereum at a loss for over two months may choose to book profits, potentially slowing down the rally. Nonetheless, if ETH bulls manage to overcome this resistance, a parabolic breakout above $4,000 could be on the horizon once the SEC confirms the approval verdict on Ethereum ETFs.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. The views expressed in this article are the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.