Ethereum, the second largest cryptocurrency, has surged to a whopping $3700 in price, putting over 90% of its long-term holders in profit.
Monday was a significant day for the crypto asset as its price rallied 10% in 25 minutes surging past $3150 to $3450 and now $3700 as of Tuesday.
According to CryptoPotato, 90% of market participants holding ETH are currently in profit, while the remaining 10% are at the money. No ETH holder is at a loss, at the time of writing.
The crypto asset rallied 10% in 25 minutes on Monday rising from $3150 to $3450. The current price is now $3700 indicating a 22% rise in the last 24 hours putting over 90% of ETH holders in profit.
A similar scenario played out 2 months ago after the Dencun upgrade which was followed by Ethereum falling by over 11% . despite the plunge over 89% of Ethereum holders were in profit.
This time the bullish run by the Ethereum crypto asset is driven by positive news of a potential approval of the spot Ethereum ETF by the United States Securities and Exchange Commission.
Bloomberg ETF analysts Eric Balchunas and James Seyffart increased their odds of Ether ETF approval this month from 25% to 75%, citing input from multiple sources and talks that the U.S. Securities and Exchange Commission (SEC) could be reversing its stance on greenlighting the products.
If the prediction by the analysts is correct there could be an influx of potential filing from potential Ethereum ETF issuers in the coming days.
Aside from the increased chances of a potential spot Ethereum ETF approval by the United States SEC, other developments resulted in the current bullish trend for Ethereum in the markets.
One of such development is the U.S. House and Senate recently passing a resolution to scrap an anti-crypto banking rule previously established by the SEC.
The resolution receiving bipartisan support from both chambers came as a shock because it is widely believed that President Joe Biden’s administration has adopted an anti-crypto stance.
Meanwhile, Crypto analysts and experts believe Ethereum could hit $4000 in the coming days if its spot Ethereum ETF is approved. This would improve the chances of the crypto asset breaking its all-time high of $4891.
What To Know
- The United States SEC is yet to approve a spot of Ethereum Exchange-traded funds after approving that of Bitcoin in early January this year. The body language and recent actions of the SEC however indicate it could be beginning the approval process as early as tomorrow.
- A spot Ethereum ETF would by the US SEC would be another win for the crypto industry adding to its credibility and bringing an influx of investors into the industry. This might lead to a bullish run for all major cryptocurrencies.
- Ethereum is the second largest crypto asset by market capitalization and price.