Analysts at QCP Capital say ETH could “easily” return to recent highs due to the market’s “significant lack of interest” and the approval of the Spot Ethereum ETF.
Recent market data shows that there is a cautious atmosphere among investors regarding the possible approval of the Spot Ethereum Exchange Traded Fund (ETF), but an unexpected approval could trigger a short squeeze and result in Analysts warn that ETH could reach recent highs.
In a recent research report, QCP Capital analysts said that the ETH/BTC pair has fallen to levels not seen since February 2021 and that the market is “expecting a rejection and an event to occur. ” suggests that. However, QCP Capital points out that Ethereum has shown strong support at the $2,900 level and defended this price point multiple times throughout the year.
Given the current market conditions, spot Ethereum ETH approval would be a bolt out of the blue and could trigger a “short squeeze that could easily return to recent highs,” QCP Capital said. Since January, Ethereum has risen to $4,066, but remains below the all-time high of $4,891 hit in November 2021. Given this situation, the approval of the ETF could be a major catalyst for new bullish momentum, leading ETH to rise again. these levels.
However, so far, there has been no clear signal from the US Securities and Exchange Commission (SEC) suggesting imminent approval of the Spot ETH ETF. Bloomberg analyst Eric Balchunas said in a recent X post that the SEC may be considering Ethereum as a security in its decision-making process, calling the chances of approval “very slim.” suggested that.
Nevertheless, David Han, an analyst at cryptocurrency exchange Coinbase, said the market “may be underestimating the timing and probability of potential approval,” adding that market cap He added that the second-largest cryptocurrency “may still have the potential for surprise upside” in the coming months. […]”
The SEC is scheduled to make a decision on VanEck's Spot Ethereum ETF application on May 23rd.