A crypto analyst has singled out an event that could be the spark that Ethereum needs to hit the price level of $3,500. He believes that the second-largest cryptocurrency by market cap is going to make this run after Bitcoin “gets its shine.”
How Ethereum Will Hit $3,500
In a post shared on his X (formerly Twitter) platform, the CEO and founder of MN Trading, Michaël van de Poppe, alluded to the Ethereum Spot ETF filing by Fidelity in his price prediction of $3,500. The crypto analyst seemed to be suggesting that approval of an Ethereum Spot ETF could propel Ethereum’s price to such heights.
His reference to Bitcoin also confirms that this might indeed be van de Poppe’s “thesis.” He spoke about Ethereum “running to $3,500 in Q1 2024” after Bitcoin has had its shine. The “shine” likely refers to the possible approval of a Spot Bitcoin ETF. Some analysts have predicted that there is a 90% chance that a Spot Bitcoin ETF will be approved by January 10, 2024.
With this in mind, the crypto analyst possibly believes that approval of an Ethereum Spot ETF could come not long after once the Spot Bitcoin ETF is approved. If that happens, it could spark a massive rally in Ethereum’s price. That could explain why Michaël van de Poppe is predicting Ethereum to run to $3,500.
Several asset managers have already applied with the Securities and Exchange Commission (SEC) to offer an Ethereum Spot ETF. However, all eyes seem to be on the SEC’s decision on the pending Spot Bitcoin ETF applications. This could simply be because a final decision is expected on the pending Spot Bitcoin ETF applications, unlike Ethereum’s, which still have a longer review process.
ETH price steadies above $2,000 | Source: ETHUSD on Tradingview.com
Ethereum Spot ETFs May Not Get The Same Reception
Historically speaking, there is reason to believe that Ethereum Spot ETFs might not enjoy the same reception that Spot Bitcoin ETFs have gotten so far. This is based on the fact that there was a stark comparison in the numbers when the futures ETF of both crypto tokens launched.
Bitcoin futures ETFs were already in place as of 2021, with ProShares Bitcoin Strategy (BITO) ETF being the first to launch. Meanwhile, Ethereum futures ETFs just launched this year. What is most interesting is the trading volume that BITO saw on its launch date in comparison to all Ethereum futures ETFs on their launch date.
BITO is reported to have seen more than $1 billion in trading volume in the first two days of launching. On the other hand, the total trading volume for Ether ETFs on their launch day amounted to just under $2 million.
Featured image from Tron Weekly, chart from Tradingview.com
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