Spot Ether ETF Approval Could Send ETH to $4K in 2-3 Months, Here\'s Why

Ethereum ($ETH) has slipped below $3,200 and is exchanging hands at $3,146.23 at press time. That is after a decline of 5.11% in the last 24 hours.

Ethereum (CRYPTO: ETH) price has fallen below $3,200 and was trading at $3,146.23 at the last check. This follows a 5.11% decline in the last 24 hours. It is difficult to pinpoint a factor behind this fall, but it is not wrong to assume that Spot Ether ETF is a golden egg for the community. It can trigger upswings and bull runs simply by securing the final nod of approval from the US Securities & Exchange Commission (SEC).

Spot Ether ETF has already received approval for Form 19b-4. The final registration Form S-1 could be approved as early as July 08, 2024. It was earlier speculated that the form will get a green light on July 04, 2024, but the timeline has been pushed to coming Monday as the next expected approval date for Ethereum’s native investment vehicle.

Another round has started, and traders are left to ponder the impact that the approval of Spot Ether ETF could have.

For starters, the approval will lead to an uptick in the token’s value. ETH could massively surge to $4,000 in the next 2-3 months. It will have to test a closer resistance first and may even test the patience of the community with a lower value. At best, it could breach the mark by the end of this year. That is something that will still instill a sense of optimism among retail and institutional traders.

Second, approving Spot Ether ETF will reflect a sentiment of adoption and recognition. Thereby attracting more traders and investors to invest in the said ETF. This would, notably, also represent diversification in crypto ETFs. Most of them may certainly have invested in Spot Bitcoin ETF. Therefore, allocating a portion to Ether would enable them to create a secondary layer in their crypto holdings without holding or storing it in their wallets.

Finally, the inflow would demonstrate the demand for crypto ETFs. Spot Ether ETFs are predicted to fetch inflows between 20% and 30% of the Spot Bitcoin ETF. The first five months are projected to see inflows worth $3.1 billion or a maximum of $4.8 billion. The number of tokens that may move is between 800k and 1.26 million.

Grayscale poses a threat of outflows via converting Grayscale Ethereum Trust into a spot investment instrument. The fee is anticipated to be higher to further support the outflows.

Meanwhile, there has been a significant surge in 24-hour trading volume. Figures are up by 68.05% at the time of writing this article, while the market cap is down by 5.10%. Near-term predictions have lowered their values and are now hovering around $3,300 for the monthly high. The overall trend is bearish, and the FGI has rewarded 44 points amid the volatility of 3.75%. The 14-day RSI is 37.31.

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