Ethereum has made a shocking recovery as the token gained an 18% surge in the last 24 hours, pushing the value to the highest of the month. At the time of writing, Ethereum price is valued at $3,659.60 with a market capitalization of $439.5 Billion. Moments before surging, ETH price was shallow around the $31K mark, but within 34 minutes, the price jumped to $34K, with a big surge in its number of transactions. Because of that, the trading volume has jumped 253%, pumping the value to $ 37.5billion.
So, why the Ethereum price is rising so much today? Let us look into that.
What’s Behind The Ethereum Price Rally?
After creating history for being the most preferred cryptocurrency network, ETH hit its peak in 2021 when it surged to its ATH of $4,891.70. But with the declining market conditions, Ethereum was laying low for years before witnessing a surge in March 2024. And now after weeks of break, Ethereum price has started to rise again with a major pump in the last 24 hours solely because of two factors related to the market recovery and new updates on Ethereum ETF.
Bullish Market Conditions
After weeks of neutral sentiments restricting the market conditions, finally, bulls appeared in the market with a 70/100 score on the fear and greed index. This along with the rise in overall market cap to $2.61 Trillion and the trading volume of $133.96 Billion confirms the bullish market conditions today. As a result, all the cryptocurrencies, including Ethereum have recovered after gaining decent gains in the last 24 hours.
Moreover, Bitcoin price targeting the ATH target of $73,750.07 after rising to $71,232 also pushing the altcoins up.
Ethereum Spot ETF Approval
The SEC’s decision over Ethereum ETF will be out on Thursday but one thing has changed, making it the main reason behind creating a surge. After the SEC portrayed disagreement with Ethereum, the investors lost hope of hearing positive news on the result day. Also, the analysts presented a very low probability of approval of Ethereum Spot ETF due to the issues of Ethereum status between Commodity and Security. However, finally, the analysts have presented a 75% approval rate in the ETH ETF case, much higher than the prior 25%.
Bloomberg ETF analysts, Eric Balchunas and James Seyffart openly announced the approval ods rising to 75% based on the SEC advising the exchanges to update their 19B-4 filings on an instant basis for Spot ETH ETFs. This single move changes the trajectory of people’s opinions about the SEC approval, including these Bloomberg analysts.
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
How High Ethereum Price Can Go?
Ethereum is still under the bullish sentiments and might continue to surge more. Agreeing with the same, crypto analyst Oliver Isaac said that the Ethereum price charts are forming the biggest daily Ethereum candle of the five years which is almost equal to the entire market cap of Solana (SOL). He further predicted the Ethereum price to hit $10K next.
Largest daily Ethereum candle in 5 years$ETH is up almost the entire mcap of $SOL today
If they approve the Ethereum ETF, they are approving the entire industry.
ETH to $10,000 next target pic.twitter.com/3KLgjUu7Xe
— Oliver Isaacs (@oliverzok) May 21, 2024
Regardless, the ongoing hype around the Ethereum ETF is supposed to be behind the Ethereum bull run, pushing the value to a $4K mark easily. The Fibonacci level indicates an upsurge in the Ethereum price, where if the trend continues the value can surge up to $4749 by the end of the month. Moreover, the Ethereum Spot ETF approval can push this value even harder to $6K.
The post Here’s Why the Ethereum (ETH) Price is Rising Heavily Today appeared first on CoinGape.
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