Today Ethereum gains 0.70%, returning above $3,800. This week could be crucial for the cryptocurrency market due to several significant catalysts.
One of these was Nvidia’s results yesterday, which not only met expectations but even exceeded them. This was somewhat necessary to continue the bull market in the AI sector and technology-related companies in general. The importance of Nvidia’s report for the markets was confirmed by the reaction of the indices following the publication, which set new all-time highs. In the cryptocurrency market we also observed a rebound, although rather moderate.
Another catalyst that could be a decisive factor in shaping market sentiment in the coming weeks is the SEC’s final decision on Ethereum spot ETFs. Below are some important points from the last few days:
- BlackRock has updated Form 19b-4 for its Ethereum spot ETF.
- The SEC has informed exchanges that it is leaning towards approving Ethereum spot ETFs and is accelerating the review process, with potential approval by Thursday.
- Standard Chartered is 80%-90% confident in Ethereum ETF approval this week, predicting ETH price targets of $8,000 by 2024 and $14,000 by 2025.
- Grayscale has removed staking language from the Ethereum ETF spot deposit, similar to recent amendments from other issuers such as Fidelity.
The market reaction to an Ethereum ETF could be completely different from that shown in early January after the acceptance of a Bitcoin ETF. In the case of Bitcoin, the decision itself was the number one topic in the media, and fruitful and widespread discussions with the SEC increased the likelihood of acceptance. For Ethereum, just a few days ago the probability was only around 20% and the market simply did not believe in acceptance. But in the last few days everything has changed, as has the attitude of the SEC. Despite this, Ethereum’s price is still more than 20% below its all-time highs, and the recent increase was simply a reaction after the significant drops seen in April and May. Therefore, the acceptance of Ethereum ETFs need not be another “sell the news” event, as it has been with Bitcoin. However, the risk of a rejection still exists, and one thing that is certain is market volatility in the coming days.
Source: xStation 5
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