Ethereum (ETH) is on the verge of reclaiming the $4,000 level after receiving a big boost from the Securities and Exchange Commission (SEC).
Excitingly, Ethereum investors are expecting the cryptocurrency’s value to surge after U.S. regulators approved a series of Ethereum exchange-traded funds (ETFs).
Most notably, there has been speculation about whether Ethereum could mirror the price volatility of Bitcoin (BTC), which experienced a significant increase in value following the approval of a similar product.
Amid the ongoing rollout of the ETF, Ethereum has seen active whale activity. Whale AlertOn May 25, three large transfers were observed from an unknown wallet to the cryptocurrency exchange OKEx.
The transactions included 9,019 ETH (approximately $33,776,166), 22,429 ETH (worth approximately $83,993,750), and 26,925 ETH (worth approximately $100,832,790), all of which were moved to the exchange.
These transfers totaled 58,373 ETH, equivalent to $118,602,706, sparking speculation as to how they might affect the valuation of the second-largest cryptocurrency by market cap.
ETH Price Prediction
Overall, the large volume of such large flows into exchanges could be an indication of expected heightened trading activity. Historically, large flows into exchanges have preceded large price movements due to looming selling pressure or strategic positioning for important market events.
Finvold wanted to gain some insight into how Ethereum will trade going forward. Coin Codewhich utilizes AI-powered machine learning algorithms. CoinCodex According to the forecast, Ethereum is expected to trade at $3,813 on June 1, which would be about 2% up from the current price.
Notably, the price prediction could set Ethereum up to reach new highs following the ETF's approval.
For example, a crypto analyst Linda was suggested Trading View In a May 24 post, he said approval could act as a bullish catalyst. LindaIf Ethereum can stabilize above $3,827 and then climb above $4,095, it will likely see a run at new all-time highs.
but, Linda He also warned that history could repeat itself, similar to the pattern observed with Bitcoin after the approval of the BTC ETF, where market makers could create a trap by triggering a sharp drop before prices can rise.
Ethereum Price Analysis
At the time of writing, Ethereum was trading at $3,741. On the weekly chart, ETH has risen by more than 20%.
Meanwhile, the ETF approval should act as a catalyst to attract institutional investors and encourage ETH bulls to put in more effort to keep the price above $3,500.
Disclaimer: The content of this site does not constitute investment advice. Investing is speculative and your capital is at risk when investing.
