- Coinbase analysts believe there is a 30-40% chance of approval for the Ethereum ETF.
- Ethereum's dominance and performance have been stagnant, suggesting a need for positive development in the near future.
It is generally believed that the US SEC will not approve Spot Ethereum applications. [ETH] The ETF is due to several factors pointing to the fact that the agency's new crypto adversary is Ethereum.
But still, there is no real confirmation from the agency itself about what it plans to do. Therefore, there is still a chance, however slim, that the SEC will approve these ETFs.
But if that happens, will the market be ready for the impact? How will Ethereum's price react?
Ethereum ETF approval odds
David Han, institutional research analyst at Coinbase, suggests there is potential for a surprising turnaround.
Coinbase's monthly outlook report In a paper published on May 15, Han said the probability of approval was 30 to 40 percent.
Bloomberg ETF analyst Eric Balchunas agrees. set His approval rating is 35%.On the other hand, the cryptocurrency community investigation According to Polymarket, a common estimate is a 7% chance of approval.
BlackRock CEO Larry Fink echoed the somewhat optimistic view during an appearance on CNBC, saying the SEC could approve a Spot ETH ETF even if it considers Ethereum a security. He said there is.
What does the data tell us?
If the SEC approves the Ethereum ETF, the market could see an unexpected surge. However, Ethereum's dominance and recent performance is trending towards an all-time low.
SEC-declared security status has had a negative impact on investment sentiment.
Ether price may see little movement in the near future as no one is expecting confirmation.
Bitcoin's [BTC] Prices had little reaction to the ETF's approval earlier this year. And the community was actually looking forward to it.
recently, funding rate This could signal that bullish momentum is cooling or that there is growing caution among traders, especially during price declines like the one that occurred in mid-April.
Source: Coinglass
Additionally, the increase in open interest despite declining trading volumes suggests that traders are building up positions and may be bracing for larger price movements down the line.
However, Ethereum transactions chart shows a consistent bullish trend over two days. A high just above $3,160 could provide short-term resistance.
read ethereum [ETH] Price prediction 2024-25
Observing how the price reacts when this level is retested can be important for your short-term investment strategy.
Source: TradingView
Considering the strong upward momentum and successful price recovery following the withdrawal, Ethereum could break out of the current resistance level if the market maintains its bullish sentiment.
