Ethereum is up by nearly 20% in the last 24 hours as analysts raise their odds on the approval of a spot Ethereum exchange-traded fund (ETF).
According to Bloomberg ETF analyst Eric Balchunas, there is a 75% chance that the US Securities and Exchange Commission (SEC) will approve a spot Ether ETF this week.
Balchunas and fellow analyst James Seyffart had earlier predicted that the SEC would not approve the product amid a lack of active discussions with applicants. However, the recent request by the SEC for the applicants to file new Form 19b-4 has raised market optimism.
ETH Rallies Towards $4,000
The development has triggered a nearly 20% price gain for ETH. The largest altcoin is among the top gainers in the last 24 hours to trade at around $3,711 as of 06:37 a.m. EST.
The gains come amid increased buying pressure. The Relative Strength Index at 63 shows that buyers are currently in control. The bullish market sentiment has led to ETH trading at a two-month high.
As more people buy Ethereum, ETH will likely soar towards $4,000 and create a new yearly high. According to crypto market analyst Michael Van de Poppe, ETH has possibly bottomed, with the only possible move being an uptrend.
The recent gains have led to liquidations across the cryptocurrency market. Data from Coinglass shows that over $260 million has been liquidated from the market in the last 24 hours.
Shifting Crypto Policy In The US
According to Balchunas, the increased approval odds come as cryptocurrencies increasingly become a political issue. The US Presidential election campaigns draw interest from the cryptocurrency community, which has often complained of needing more regulatory clarity.
Recently, billionaire investor Mark Cuban criticized the US government, saying its policies could cost Joe Biden the presidency. In a post on X, Cuban said that the SEC Chair, Gary Gensler, had made it impossible for crypto companies to operate in the US.
“If Joe Biden loses, there is a good chance you will be able to thank Gary Gensler and the SEC. This is also a warning to Congress. Crypto voters will be heard this election,” Gensler said.
Biden’s rival in the November elections, Donald Trump, has been wooing crypto investors in his campaign messages. In a recent event held for non-fungible token (NFT) holders at his Mar-a-Lago resort, Trump bashed the Biden administration, saying they were driving crypto businesses out of the US.
