The US SEC approved applications for Ethereum (COIN: $ETH) ETFs from CBOE, Nasdaq, and NYSE on Thursday, May 23. These approvals could potentially pave the way for the regulator to approve the listing on Ethereum ETFs on major US exchanges.
While the SEC has not given a date for when it could approve the listings, it has already caused quite a stir in the crypto markets, especially for ETH holders.
Ethereum (ETH) Whale Huge Gains
Following the positive progress on the Ethereum (ETH) ETF approval process, Ether (ETH) holders saw huge gains at the tail end of the week. According to data from Lookonchain, an Ether (ETH) whale has experienced millions of dollars worth of unrealized gains.
In one instance, the whale used around $26.67M $USDT to purchase ETH, equal to around 8.733 Ether (ETH) before the SEC ETF news came out. At the time, the whale bought the coins for around $3,054 per coin. Their smart move saw them make unrealized gains of around $6 million.
After the SEC approved the applications, the whale bought another $24.7 million worth of Ethereum ecosystem tokens, which saw them make around $1.1 million in unrealized gains. The whale deposited 19.75M $USDT to the Binance exchange, and withdrew 684,364 $UNI($6.7M), 52,623 $AAVE($5.4M), 4.04M $LDO ($9.3M), 250,969 $FXS($1.25M), and 82,041 $ENS($2M).
Ether ETF Approval Timeline
Thus far, nine major players in the financial sectors aim to launch Ethereum ETFs after the SEC approved Bitcoin ETFs in January. The approval marked a major milestone for the crypto sector, bringing in an unprecedented level of liquidity. Commenting on the SEC’s latest move, Andrew Johnson, VP at 21Shares, stated, “This is an exciting moment for the industry at large.” He added that it was a “significant step” towards approval.
Thursday, May 23 was the deadline for the approvals. However, market participants were anticipating a rejection as the SEC had remained silent after they filed their applications. On Monday, the SEC sent out requests for the participants to fine-tune their filings, which sent them scrambling to make updates in just days.
Price Trend
Following the SEC’s approval of Ether ETF applications, Ethereum (ETH) has gained 23.48% over the past seven days to $3,805.18 per coin. Over the past 52 weeks, the price of ETH has grown 109.74%. The ETH volume has declined 29.13% in the past 24 hours to $10.92B, and it has a market cap of $456.91B. Its current price is a 22.45% discount to its ATH price of $4,891.70.
Price Forecast
Analysts are bullish on ETH, predicting a high of $5,260 by 2030 in the long term. Looking at the indicators, Ether’s Relative Strength Index (RSI) is hovering around the overbought range, driven by the hype of the SEC ETF approval. If the bullish pattern continues, ETH could test the upper resistance level of $4,094.75 in the coming weeks. However, if the bears win, it could pull ETH toward the lower support level of $3,400 by the end of May.
Should You Buy ETH?
There is high level of optimism in the crypto market regarding Ether (ETH). Most market participants anticipate the SEC will approve the Ether ETFS sometime this year. Consequently, while Ethereum is trading near its ATH, there is still room for growth. Adding ETH to your portfolio could potentially yield huge gains once the SEC approves the ETFs.
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