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Ethereum (ETH) is on a bull rally amid positive expectations regarding the Securities and Exchange Commission (SEC) of the United States’ approval of Ethereum spot ETFs and BlackRock’s (NYSE: BLK) interest in real-world assets (RWA) tokenization.
Analysts started speculating on price as the cryptocurrency market awaits further developments in exchange-traded fund (ETF) approval and BlackRock’s endeavors. Reaching $5,000 in the next few days is possible as speculation heats up, even before the awaited ETF approval.
In particular, two analysts from the private wealth management firm Bernstein forecast a 75% pump to $6,600 moving forward. According to Gautam Chhugani and Mahika Sapra, ETH could mirror Bitcoin’s (BTC) gains after its ETFs’ approval earlier this year. DefiLlama reported this and six other experts’ opinions about Ethereum on May 22.
However, Ethereum could see some action before the forecasted $6,600 a few weeks after the effective approval, as reported. This is because cryptocurrency investors could try to price the approval firsthand, backed by other positive news.
Ethereum price analysis
In this context, it is possible that ETH first tries to challenge its previous all-time high of $4,869. This could happen as Ethereum tests the $5,000 psychological resistance, right above the historical resistance.
Notably, the leading Web3 cryptocurrency shows strong momentum, according to its weekly relative strength index (RSI) of 65.18. ETH trades at $3,692 by press time.
Joe Lubin, co-founder of the Ethereum Foundation and founder of Consensys, is optimistic about the token’s price action.
“Expect a “floodgate” of demand for Ether, which will likely lead to a supply crunch and drive prices higher. There’s going to be a pretty large amount of natural, pent-up pressure to purchase Ether.”
– Joe Lubin
In the meantime, BlackRock has submitted an updated spot Ethereum ETF 19b-4 document, following the SEC’s guidance. The update addresses Ethereum staking by the funds, which BlackRock and other interested institutions state they will not engage with.
The latest filing shows that BlackRock has also submitted an updated spot Ethereum ETF 19b-4 document, also stating that it will not participate in Ethereum staking. BlackRock’s Bitcoin ETF is currently the second largest and is set to overtake Grayscale.https://t.co/JQgUgQWdIv
— Wu Blockchain (@WuBlockchain) May 22, 2024
As things develop, traders and investors look forward to Ethereum price projections and a nearing $5,000 test. Still, cryptocurrencies are highly volatile and emotion-driven, so everything can quickly change. Speculators must remain cautious and avoid exposure above their risk profile.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.