Analysts predict approval of Ethereum ETF could propel ETH price to $5k

QCP Capital analysts are suggesting that the approval of spot Ethereum ETFs by the SEC could potentially drive the price of ETH to $5,000 later this year. They believe that if the financial regulator surprises the market with its approval, Ethereum’s native cryptocurrency could reach a natural short-term target of $4,000. However, if the SEC rejects the ETF applications, they anticipate a drop back to $3,000. This level has previously acted as strong support for ETH at the $2,900 level.

There have been rumors circulating about the potential approval of Ethereum ETFs, which caused a surge in the price of Ethereum by almost 20%, reaching $3,650 on Tuesday. QCP Capital had previously warned about the lack of interest in the market but noted that the approval of spot Ethereum ETFs could easily boost ETH back to recent highs. They also cautioned that an unexpected approval could trigger a short squeeze, leading to new price highs.

However, the SEC may have a strategy in place to address the distinction between Ethereum and staked Ethereum. They could classify staked Ethereum as a security, aligning with their ongoing legal battles and investigations. This approach would allow the SEC to approve Ethereum ETFs while maintaining their regulatory stance.

Overall, analysts are optimistic about the potential for Ethereum’s price to increase, but the final outcome will depend on the SEC’s decision regarding the approval of spot Ethereum ETFs.