Ethereum’s price reached a new high on May 21, 2024, hitting $3,719, a 40-day peak. This represents a 30% increase over the past week, indicating positive staking trends and offering a glimpse into what may come after the approval of spot ETFs.
Furthermore, Ethereum’s price has now surpassed that of Bitcoin, as there is a 75% chance that the US Securities and Exchange Commission (SEC) will approve an ETH spot ETF this week. Major digital asset management companies, such as VanEck and BlackRock, have submitted filings, putting the SEC in a race against time to make a decision before the May 23/24 deadline.
Interestingly, the surge in Ethereum’s price began after Bloomberg Senior ETF analyst Eric Balchunas revealed the impending ETF approval. In fact, Ethereum has outperformed Bitcoin significantly in May 2024.
The chart above illustrates Ethereum’s price action compared to Bitcoin’s in May 2024. Ethereum reached a 65-day peak of $3,811 on May 21, marking a 36.54% gain for the month. A closer look at the chart reveals that Ethereum has outpaced Bitcoin in terms of growth during this period.
Between May 1 and May 21, Ethereum’s price surged by 36.54%, while Bitcoin’s price only increased by 25.1%. This suggests that crypto investors currently prefer taking long positions on Ethereum over Bitcoin in anticipation of the SEC’s approval verdict.
Additionally, there is speculation that ETH ETFs will attract more demand than BTC ETFs due to the potential passive income generated by Ethereum’s Proof-of-Stake protocol. Recent trends on the beacon chain indicate that investors are already preparing for the influx of funds into ETH ETFs.
According to official data from the beacon chains, Ethereum investors have staked an additional 25,184 ETH since the beginning of the week, bringing the total stake to 32,154,810 ETH. This amounts to approximately $95 million worth of newly-staked ETH coins. It appears that most holders are willing to wait for further gains, despite the current high prices.
Moreover, with the added passive income from staking, some analysts predict that BTC ETF holders may switch to Ethereum ETFs once they are approved. This could lead to a prolonged trend of rising deposits in ETH staking contracts. As staking reduces the amount of ETH available for trading on exchanges, it may intensify bullish pressure on Ethereum’s price.
Currently, Ethereum’s price is trending above the $3,745 mark. The $95 million surge in Ethereum 2.0 staking deposits this week suggests that bulls are aiming for a breakout above $4,000. According to IntoTheBlock’s data, the next major resistance lies at the $3,900 level.
The chart above provides an Ethereum price forecast. It shows that 1.83 million investors have acquired 642,430 ETH at an average price of $3,905. While some of them may choose to book profits after holding at a loss for over two months, if ETH bulls can overcome this resistance sell-wall, a parabolic breakout above $4,000 may be on the horizon once the SEC confirms the approval verdict on Ethereum ETFs.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect those of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
