- Ethereum (ETH) targets $5000 after hitting $4k as an analyst discloses no serious hurdle on its path.
- Its current rally has been linked to the upcoming Dencun upgrade and the potential approval of its spot ETF.
Ethereum’s (ETH) remarkable run of 59% price appreciation in the last 30 days to hit $4k in a renewed target to breach its all-time high price at $4,891 seems to be on course. However, the broad market seems to be going through a level of consolidation which seems to have affected Chainlink (LINK), Polygon (MATIC), Uniswap (UNI), etc. Regardless, most analysts remain positive about the comeback of altcoins, especially Ethereum. One of them is Ali Martinez, a renowned analyst in the crypto industry.
Speaking to his $51k X followers, Ali emphatically stated that ETH has a good chance of hitting $5000. According to him, there is not enough crucial resistance within its path apart from the supply zone at $4,522-$4,646. At this price range, 600,000 addresses purchased 1.63 million ETH. Fortunately, the analyst is certain that this cannot force a bearish reversal.
It’s not a matter of if, but when!
Ethereum’s explosive run to the current price zone is undeniably attributed to the ripple effect of Bitcoin, however, some analysts suggest that the price probably reacted to the potential approval of ETH spot ETF approval in May and the much anticipated Dencun upgrade.
Bloomberg Analysts Review Chances of Spot ETH ETF Approval
In January, Bloomberg ETF analyst Eric Balchunas disclosed that there was a 70% chance of spot ETH ETF approval in May. His colleague, James Seyffart, was not very far with his prediction as he gave it a 60-65% chance.
However, the analysts drop the chance to 30% in their latest report. According to Seyffart, there seems to be little to no movement around the applications with less than a few months to go. Drawing insight from an earlier publication by Crypto News Flash, the application by Fidelity was delayed by SEC.
This Ethereum ETF cycle feels like the opposite of Bitcoin ETF approval odds at the moment. The more we see/hear (and don’t see/hear) the less optimistic I become. We’re ~73 days from the deadline and there really seems to be little to no movement.
Coinbase and Grayscale met with the US Securities and Exchange Commission (SEC) on March 8 to discuss the conversion of Grayscale’s Ethereum Trust into an ETF.
Commenting on this, Balchunas stated that this was a good sign except that SEC has not commented on the issuers. The Bloomberg analysts are not the only ones who gave the ETF approval a 70% chance. Crypto market-making firm GSR disclosed that the approval is more likely than not.
The one caveat is that we started to see movement with the spot Bitcoin ETF applications in October for their January 10 approval (e.g. issuers seeding the ETFs; DTCC listing the ETFs, etc), and we haven’t seen that with the spot Ethereum ETFs yet. Perhaps the SEC and issuers have the playbook from Bitcoin, truncating the process, but if we don’t start to see positive progress over the next month, we will lower our approval odds.
As earlier reported by Crypto News Flash, financial powerhouse Standard Chartered also predicted that the approval in May is imminent.
Currently, ETH is trading at $4010 after surging by 8% in the last seven days, and 69% from year-to-date.
