The cryptocurrency industry is giddy with excitement as well-known expert Pentoshi believes Ethereum (ETH) might rise above $3,400. The anticipated approval of spot Ethereum Exchange-Traded Funds (ETFs) in the upcoming year is the driving force behind this bullish prediction.
The U.S. Securities and Exchange Commission (SEC) received proposals for spot-based Ethereum ETFs earlier this year from prominent asset management firms including Ark Invest and 21Shares. These ETFs have the potential to open the door for more institutional investors and money to enter the Ethereum market if they are authorised.
ETF approval boost
Pentoshi said in a tweet that they were positive on the Bitcoin ETF back when its price was between $25,000 and $28,000. He expected the Ethereum ETF to be in a similar predicament in 2024. Whatever one’s opinions, it ultimately comes down to game theory, he said.
The expert predicts that as the clearance date draws near, holders could be less likely to sell their Ethereum, while others might feel pressured to join the market and drive up the price. Pentoshi mentioned that possible prices for Ethereum were between $2,7xx and $3,400.
Ethereum’s price as of the most recent market data is $2,281, indicating a little decrease of 0.37% over the previous day. The market is now awaiting regulatory decisions for Ethereum ETFs, and the short- to medium-term trajectory of ETH prices is believed to be significantly influenced by the possibility of approval.
The cryptocurrency community is still split on the possible effects of these regulatory decisions, despite market experts and enthusiasts keeping a close eye on developments in the ETF licencing process. Some predict that Ethereum’s price would rise sharply in response to the introduction of ETFs, creating new opportunities for institutional investment. Some warn that market responses might be erratic and stress the importance of thorough research and risk management.
