Ethereum (ETH) Surges on Renewed Hope for Spot ETF Approval

The price of Ethereum (ETH) skyrocketed nearly 20%, fueled by a surge in optimism surrounding the potential approval of a spot Ethereum ETF. This news comes as the first major deadline for a decision by the U.S. Securities and Exchange Commission (SEC) approaches on May 23rd.

Shifting Tides at the SEC?

Bloomberg ETF analysts Eric Balchunas and James Seyffart significantly increased their approval estimate from 25% to 75%, citing potential political pressure on the SEC. The SEC is reportedly requesting exchanges like the NYSE and Nasdaq to update their filings, hinting at a potential separation from the fund registration process.

Options Market Anticipates Bullish Outcome

The upcoming expiry dates for ETH options contracts are drawing significant interest, with a combined open interest exceeding $3 billion on Deribit, a leading derivatives exchange.

The call-to-put ratio heavily favors call options, indicating a strong bullish sentiment among traders. A sustained price above $3,600 by the expiry dates could result in significant profits for bullish strategies.

Prometheum’s Ethereum Custody Service Raises Concerns

The recent launch of a security-based Ethereum custody service by Prometheum has sparked debate. The Commodity Futures Trading Commission (CFTC) expressed concerns about potential conflicts with their classification of ETH as a commodity.

ETH/USD Technical Analysis Points to Continued Uptrend

Ethereum successfully surpassed the $3,500 resistance zone and is currently trading above $3,600. A short-term rising channel on the hourly chart suggests continued upward momentum unless the price falls below $3,400.

Key resistance levels lie at $3,700, $3,720, and $3,800, with potential for further gains towards $4,000 if breached.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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