Ethereum Faces Volatility Amidst Speculation On ETF Approval

In recent trading sessions, Ethereum ($ETH) experienced a notable price drop of over 10% from its peak of $4,000. However, despite this downturn, a significant majority of Ethereum holders, approximately 89%, remain in a profitable position. 

As investors assess the potential for Ethereum’s price to rebound towards the $4,000 range, on-chain data highlights a key level of resistance around $3,700.

At this price point, nearly 991,000 addresses collectively hold 4.35 million $ETH, indicating a substantial volume of potential selling activity.

Amidst this market volatility, speculation surrounding the approval of a Spot Ethereum ETF continues to capture investor attention.

A financial agent at Standard Chartered has expressed optimism regarding the potential approval of such an ETF by May 2024. This approval, if granted, could introduce an estimated $45 billion in inflows into the Ethereum ecosystem.

May 23 Decision Date In Anticipation For Ethereum ETF

Geoffrey Kendrick, Head of Forex and Crypto at Standard Chartered Bank, anticipates a decision on May 23, projecting a significant influx of funds ranging from $15 billion to $45 billion within the first year of ETF approval.

However, Kendrick acknowledges that this view is not universally shared, labeling it as a “non-consensus view.”

Despite Kendrick’s optimism, some analysts, including notable figures like @JSeyff and @EricBalchunas from Bloomberg, have tempered expectations for ETF approval.

These analysts have revised their estimates, reducing the likelihood of ETH ETF approval in May from 70% to just 30%, citing regulatory uncertainty and potential challenges in gaining approval from the Securities and Exchange Commission (SEC).

As Ethereum navigates through market fluctuations and regulatory speculation, investors remain vigilant, closely monitoring developments that could significantly impact the trajectory of the cryptocurrency in the coming months.

Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.