Why is Ether (ETH) price up today?
Ethereum price is up today as traders position in hopes of a spot ETH ETF approval.
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Collect this article as NFTEther (ETH) price surged by 30% in the last three days to reach a two-month high of $3,947 on May 23.
Ether’s recent rally is driven by two key factors: the anticipation of a spot Ethereum exchange-traded fund (ETF) approval in the U.S. and traders’ expectations that ETH price could rise after approval.
U.S. lawmakers call on SEC to approve spot Ethereum ETFs
The crypto community is on edge as the Securities and Exchange Commission’s (SEC) decision on the Ethereum ETF nears.
Bloomberg Senior ETF analyst Eric Balchunas expects the SEC to announce its decision at 4:00 pm ET on May 23. Balchunas based this on previous decisions, like the one for the spot Bitcoin ETFs, which were approved at 15:45 ET on Jan. 10.
On May 23, a group of bipartisan U.S. lawmakers asked SEC chair Gary Gensler to approve the spot Ethereum ETFs.
A letter shared by Balchunas highlights efforts by House members to have the regulator apply the same "principles” as it did when it approved spot Bitcoin ETFs earlier this year.
This development follows the approval of the FIT21 crypto bill in the U.S. House of Representatives, which passed on May 22 with 208 Republicans and 71 Democrats in favor and 136 against.
Exchanges and issuers have filed updated 19b-4 forms over the last few days as the crypto industry awaits the SEC’s next move.
Bulls take control of Ethereum price
Traders are noticeably excited about the potential for a spot ETH ETF launch, and Ether price came close to $4,000 on May 23. Analysing Ether’s price action, market analysts CryptoBusy observed an uptick in Ethereum’s dominance.
“Today is the deadline, and the market is anticipating an approval today. Though we haven’t seen the exact news yet, investors and traders are now buying $ETH, causing the price to pump!”
If ETH maintains its upward momentum, its dominance is likely to continue increasing, possibly ushering in the long-awaited altcoin season.
Popular trader Daan Crypto Trades is expecting ETH price volatility to remain high after leveraged traders “lost about $1B in Open Interest in just the last hour.”
The trader reminded his followers to remain cautious as the spot ETH ETF decision will determine what happens in ETH markets on May 23.
From a technical perspective, the value of the relative strength index (RSI) at 71 reinforced the control bulls currently have on the ETH price.
Key levels to watch on the upside are the psychological level at $4,000 and the March 11 high at $4,091.
Conversely, the RSI paints overbought conditions, meaning the approval of spot ETH ETFs may turn into a “sell-the-news event” as bears might consider booking profits on the rally to $4,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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