Ethereum prices have been soaring this week, breaking past an essential mark. With an optimistic outlook, the weekly Ethereum chart currently indicated a surge in future prices. We only need one more positive weekly close to print a higher high. Ethereum has seen a minor bump today, rising by 0.70% to trade at $3,301. It is slowly approaching analyst estimates of $6,446 at year’s end.
Current estimates for the second-biggest cryptocurrency hint that it is set to hit the $13,654 mark in the future. Ethereum’s price has surged due to a significant change in the SEC’s position. The SEC was initially hesitant to approve ETF-like vehicles for any cryptocurrency other than Bitcoin just a few months ago.
But the regulatory body made a 180-degree flip and approved these Ethereum-related products, much to the surprise of the market. Technically speaking, bulls in Ethereum are now hoping to take the token back to its all-time high of $4,100. In the short term, the most likely outcome is a breakout above this level.
Was the Spot ETH ETF Approval a Boost to Prices?
New spot Ethereum exchange-traded funds (ETFs) that resemble the new spot Bitcoin ETFs have recently received SEC clearance. Though these spot Ethereum ETFs would probably not experience the same kinds of inflows as the recently established spot Bitcoin ETFs, there would still be a sizable amount of fresh capital coming in. The approval from the SEC raised bars for Ethereum, making it even more credible due to recognition from the regulated financial world.
And during the next 18 months, Ethereum’s price will probably rise thanks to that fresh financial inflow. Due to concerns about market manipulation, the SEC banned spot Bitcoin ETFs for nearly ten years before being compelled to accept them following Grayscale Investments’ successful legal challenge last year. However, the approval for Ethereum landed as a rather surprise for the market which was expecting a thumbs down.
Will ETH Outperform BTC?
Forbes in its recent article highlighted that in the world of cryptocurrencies, there are a lot of possibilities, including the possibility that Ethereum will overtake Bitcoin, considering how volatile the market is. As demonstrated in 2021, ETH outpaced BTC, rising by around 400% to 66% in comparison.
Experts agree that Ethereum has a steady future because of its unique blockchain and several use cases. It may also outperform Bitcoin. Ethereum’s price surpassing that of Bitcoin is regarded as extremely unlikely. However, given its unlimited supply, which sets it apart from Bitcoin, ETH has the potential to equal BTC in market valuation.
