Ethereum (ETH) Eyes Potential Rally Toward $7,500 as Spot ETFs Horizon Nears

As the highly anticipated launch of the first spot Ethereum ETFs in the United States nears, experts are predicting a significant price appreciation

The launch of the first spot Ethereum ETFs in the United States is on the horizon, and experts are predicting that it could lead to a significant price appreciation for the second-largest cryptocurrency in the market.

According to a recent report by Reuters, the US Securities and Exchange Commission (SEC) could approve Ethereum ETFs as early as July 4, with discussions between asset managers and regulators now said to be in the final stages.

Industry executives and other participants who spoke to the agency about the matter, but requested anonymity due to the confidential nature of the talks, revealed that the process of amending the offering documents to address regulator concerns has progressed to resolving only “minor” issues with the applications.

“Approval is probably not more than a week or two away,” one person said, striking a notably optimistic tone.

The launch of Bitcoin-based ETFs in the US in January was a major success, with these products quickly gathering around $8 billion in assets, according to Morningstar Direct data.

By late June, these nine new ETFs had nearly $38 billion in assets, while the holdings of Grayscale Bitcoin Trust – which converted its $27 billion BTC trust into an ETF simultaneously – dipped to $17.8 billion.

However, experts believe the launch of the new spot Ethereum ETFs may not be as impressive, given that the cryptocurrency is not the same size in terms of market cap, nor does it have the same volumes as BTC, according to Coinshares’ head of research James Butterfill.

“The hype around Bitcoin is also different compared to other cryptocurrencies. Given these differences, I think the inflows will be much more muted when the Ethereum ETFs launch,” said Butterill.

“With Bitcoin, there had been pent-up demand for a decade, and investor interest was off the charts,” said Bryan Armour, an ETF analyst at Morningstar. “This just isn't going to command the same excitement.”

But not everyone shares the same cautious outlook. Quinn Thompson, the founder and CIO of Lekker Capital, recently stated that the market is in the middle of “one of the most obvious and attractive crypto buying opportunities of recent memory.”

“It used to be cool to be bullish, but now I think Twitter has become a contest to see who can have the most negative ETH ETF take,” said Thompson.

“Personally, I think ETH will reach $7,000 and BTC will make its first attempt at $100,000 by the election in November.”

The Glassnode co-founders also shared a bullish price analysis for Ether, stating that if investors look at ETH's history, they can see a clear pattern that is very similar to the early stages of the 2021 bull market.

“If you zoom out a bit, it appears that ETH is currently in the final stages of a bullish Wyckoff accumulation structure,” they noted.

“They believe the current structure gives a target of around $7,500 as a final high for ETH, mirroring the Fibonacci extension seen in 2021 and that would mark a strong rally in ETH soon!”

While caution remains regarding the possibility of further price declines, experts argue that such a scenario would require a new exogenous event to occur.

Overall, market sentiment is leaning towards Ethereum reaching $7,000 and Bitcoin's first attempt at $100,000. At the time of writing, ETH was trading at $3,460, up more than 3% over the past 24 hours as the broader market recovers from the corrections seen over the weekend and into the beginning of the week.

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