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Ethereum (ETH) Targets $4,000 Amid Spot ETF Approval Speculation

Key Points: 

  • Ethereum surged 19.24% on May 20, driven by hopes for SEC approval of ETH-spot ETF applications. 
  • Bitcoin rallied 5.97%, retaking the $70,000 mark amid US BTC-spot ETF market inflows. 
Cryptocurrency symbols and bar graph showing increase in venture capital funding in Q1 2024.
Source: Coinbackyard

ETH Nears $4,000 on ETF Hopes 

On May 20, Ethereum (ETH) jumped 19.24%, closing at $3,662. Investor sentiment soared due to expectations that the SEC might approve the first batch of US ETH-spot ETF applications. 

Bloomberg’s Eric Balchunas increased the likelihood of SEC approval to 75%, citing industry chatter and the SEC’s requests for exchanges to update filings. Key upcoming deadlines include May 23 for VanEck Ethereum ETF, May 24 for ARK 21Shares Ethereum ETF, and May 30 for Hashdex Nasdaq Ethereum ETF. Grayscale Ethereum Trust has a final deadline of June 23. 

Approval could be significant for the crypto market, signaling a potential shift in the SEC’s stance on ETH, which it currently tags as a security. 

Bitcoin Rallies to $70,203 Amid ETF Inflows 

Bitcoin (BTC) rose 5.97% on May 20, closing at $70,203, marking its highest level since April 11. The US BTC-spot ETF market experienced net inflows for the sixth consecutive session. 

Notable inflows included $9.3 million for Grayscale Bitcoin Trust, $68.3 million for ARK 21Shares Bitcoin ETF, $64.0 million for Fidelity Wise Origin Bitcoin Fund, and $24.0 million for Bitwise Bitcoin ETF. Excluding some smaller funds, total net inflows reached $165.6 million. 

Technical Analysis 

Bitcoin Analysis: 

BTC stayed above the 50-day and 200-day EMAs, indicating bullish trends. A breakout above $70,500 could push BTC toward its all-time high of $73,808. Conversely, a fall below $69,000 could bring the $64,000 support level into focus. The 14-Daily RSI at 62.32 suggests BTC could reach its all-time high before hitting overbought territory. 

Ethereum Analysis: 

ETH also remained above the 50-day and 200-day EMAs. A breakout above $3,750 could target the $3,835 resistance level and potentially reach $4,000. If ETH falls below $3,500, it may test the $3,244 support level. With a 14-period Daily RSI of 71.02, ETH is in overbought territory, which could trigger selling pressure near $3,800. 

May 21, 2024 at 1:00 pm

Updated May 21, 2024 at 1:00 pm

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