Arthur Cheong, founder and CEO of DeFiance Capital, has made a bold prediction that the price of Ethereum (ETH) will reach $4,500 before the first spot Ethereum exchange-traded funds (ETFs) start trading. This comes after the U.S. Securities and Exchange Commission (SEC) approved the 19b-4 filings for eight spot ETH ETFs on May 23. These approvals allow the ETFs to be listed and traded on their respective exchanges, with filings from VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK-21Shares, Invesco Galaxy, and Bitwise.
Cheong shared his forecast with his 167,000 followers on X (formerly Twitter), stating, “4.5k before spot ETF goes live for trading [in my opinion].” While the approval of the 19b-4 filings is significant, ETF issuers also need approval for their S-1 filings, which could take some time. Bloomberg ETF analyst James Seyffart mentioned that this process could range from weeks to months.
The unexpected approval of Ether ETFs by the SEC has caused a stir in the cryptocurrency market. Analysts had low expectations for approval, but it turned around suddenly, leading to a 20% increase in Ether’s price. Former President Donald Trump further contributed to the excitement by announcing his acceptance of campaign donations in cryptocurrency.
In terms of technical analysis, the ETH/USDt daily chart shows that the price has been fluctuating between $3,860 and $3,980. The Relative Strength Index (RSI) indicates strong buying pressure without entering the overbought territory. The moving averages suggest a bullish sentiment in the shorter term, with the 50-period moving average above the 200-period moving average.
Given this upward trend and sustained buying interest, Ethereum has the potential to test higher resistance levels. The immediate resistance is at $3,980, and a break above this level could lead to Ethereum approaching the psychological level of $4,000 and potentially reaching $4,500.
The SEC’s approval of ETFs came shortly after the passing of the Financial Innovation and Technology for the 21st Century Act (FIT 21) by the House. This bill aims to clarify the jurisdiction of the SEC versus the Commodity Futures Trading Commission (CFTC) when it comes to cryptocurrencies, and many in the industry see it as a significant victory.
Source: TradingView
