Altcoin season will commence not based on a date, but based on market sentiments. When it commences, expectations are that digital assets other than Bitcoin ($BTC) will gain not just recognition but also token value. However, the focus could be largely on Ethereum ($ETH), and it may end up dominating the run throughout the season. This stems from two factors, namely exchange-traded funds (ETFs) and market value to real value (MVRV).
For example, MVRV is outperforming Bitcoin ($BTC), indicating that positive fundamentals are supporting a bull run. It coincides with the bearish run’s presence in the current trend. The token is down to $3,575.87, with a slight uptick of 0.51% at the time of writing this article. Another factor driving MVRV is the accumulation of whales. Large investors can be seen accumulating the token in their portfolios in anticipation of a surge when the ETF gets approval.
That said, Spot Ether ETF is the final element to factor into the ecosystem. The US Securities & Exchange Commission, or SEC, has already approved Form 19b-4 for Ethereum. Chances are that the agency will soon give a green light to the final registration form. This will allow public exchange platforms to list the ETF product, thereby enabling investors and traders to start their trading activities.
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Analysts believe that Spot Ether ETF will play a crucial role for Ethereum and the crypto sphere on a broader level. Inflow could be worth billions of dollars, potentially competing with the initial trends of the Spot Bitcoin ETF. Analysts expect inflows to be worth billions of dollars because of the token’s smart contract capabilities and market utility.
The price could reach as high as $4,000 when the Commission approves the final registration form for Spot Ether ETF. ETH’s current token valuation is up by 1.91% and 14.11% in the last 7 days and 30 days, respectively. The near-term predictions are in sync with the Ethereum forecast, which predicts that ETH will end the year at $5,000. Alternatively, it could end 2024 at around $4,300.
The next 30 days could see ETH surge by 2.50% to a value of $3,657.75. The next five days will form a resistance at around $3,654. Simply put, the $4,000 milestone is very close, and the approval of ETFs will fuel that uptrend on the price charts.
ETH’s volatility hovers around 43.53, while the prevailing sentiments are neutral. It has traded profitably in 15 days out of the last 30 days, earning 60 points per the Fear & Greed Index.
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Factors such as cooling inflation and rate-cut decisions by the Federal Reserve will have a greater influence on Ethereum. Inflation could take time to cool down, and the Fed may not cut rates anytime soon.
