The US Securities and Exchange Commission approved one application for the Spot Ether ETF on May 23, 2024. It took whales just five days to capitalize on the opportunity and inject the ecosystem with roughly $2 billion. The impact is evident, with the price skyrocketing closer to $4,000 at the time of writing this article. Bullish sentiments are strong, signaling the potential to cross the major milestone of $5,000 at the earliest.
Two crucial indicators support the current situation: the price staying above $3,850, aiming to test the next resistance of $4,200, and the top 1,000 wallets accumulating 510,000 Ether tokens.
At press time, the value of a single ETH against the US dollar is $3,908.42, up 2.66% in the past 24 hours. Whales are primarily interested in injecting funds into Ether, estimating the flow’s value in billions of dollars. The emergence of the Spot Bitcoin ETF and the market’s response to it serve as the foundation for this. Bitcoin ETFs have accumulated approximately $58 billion worth of holdings in five months, starting in January 2024.
The top 1,000 Ether wallets previously held 76.01 million. This dates back to May 19, 2024. Holdings have now surged to 76.52 million as of May 26, 2024. Over the last five days, we have accumulated 510,000 tokens. The accumulation took place when the value of ETH stood at $3,855. It is only safe to conclude that they have collectively invested $1.95 billion since the Commission approved the ETH ETF.
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Achieving the $5,000 milestone will mark a significant development for the ecosystem, as it will be a new ATH altogether.
Notably, Ether ETFs have been approved in Hong Kong.
Historical trends suggest that Ether will face a higher resistance. Ether is currently trading at $4,200, with the potential to rise to $4,500 before reaching the $5,000 mark. While drawing a tentative timeline is challenging, speculation suggests that ETH could reach $5k by the end of this year or in the early days of 2025.
Meanwhile, the US market is witnessing a distinct shift within the crypto ecosystem. Donald Trump has taken a strong stance, asserting that America should become a global leader in the crypto industry. This marks a double-down on his position in favor of the market at a time when authorities and leaders are discussing the FIT21 Act.
Regardless of the outcome, the market anticipates access to Ether ETF now that an application has received approval. More applications are on the table for the SEC to review and give a green light to.
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The market cap and 24-hour trading volume of Ethereum are up by 2.67% and 70.40%, respectively.
