Ethereum (ETH) is looking to reclaim the $4,000 mark after receiving a major boost from the Securities and Exchange Commission (SEC).
Excitingly, Ethereum investors are anticipating a potential surge in the cryptocurrency’s value following the U.S. regulator’s approval of a series of first-spot ETH exchange-traded funds (ETFs).
Notably, there is a buzz of speculation about the possibility of Ethereum mirroring the price movement of Bitcoin (BTC), which experienced a significant rally after the approval of a similar product.
ETH whale transactions. Source: WhaleAlert
These transfers, totaling 58,373 ETH and equating to $118,602,706, have led to speculation regarding the impact on the valuation of the second-ranked cryptocurrency by market cap.
ETH price prediction
Overall, significant movement of such large sums into exchanges could suggest an anticipation of heightened trading activity. Historically, large transfers to exchanges have sometimes preceded major price actions, either due to impending sell-offs or strategic positioning for significant market events.
To gather insights into how Ethereum is likely to trade in the coming days, Finbold turned to CoinCodex, leveraging its AI-powered machine-learning algorithms. According to CoinCodex’s projections, Ethereum is expected to trade at $3,813 on June 1, representing an increase of almost 2% from the current price.
Ethereum price prediction for June 1. Source: CoinCodex
Notably, the price projection could set the stage for Ethereum to target new highs following the ETF approval.
For instance, crypto analyst RLinda suggested in a TradingView post on May 24 that the approval could act as a bullish catalyst. According to RLinda, if Ethereum consolidates above $3,827 and surpasses $4,095, it will likely target a new record high.
However, RLinda also cautioned that history might repeat itself, similar to the pattern observed with Bitcoin after the approval of BTC ETFs. Market makers could create a trap by causing a quick drop in price before an upward movement.
Ethereum price analysis
By press time, Ethereum was trading at $3,741. On the weekly chart, ETH has rallied by over 20%.
Ethereum seven-day price chart. Source: Finbold
Meanwhile, the ETF approval acting as a catalyst for attracting institutional investors should encourage ETH bulls to work harder to sustain the price above $3,500.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
