Arthur Cheong, the founder and CEO of DeFiance Capital, a crypto-focused investment firm, predicts that the price of Ether (ETH) could reach $4,500 even before the official approval of the first spot Ether exchange-traded funds (ETFs). Cheong shared this forecast with his 167,000 followers in a post on May 26.
As of 10:56 am UTC, Ether was trading at $3,903, showing a 2.57% increase in the past 24 hours. If Cheong’s prediction proves to be accurate, Ether’s price would experience a surge of over 15% from its current level to reach the $4,500 mark, as reported by CoinMarketCap.
This prediction comes after the U.S. Securities and Exchange Commission (SEC) granted approval for the 19b-4 filings of eight spot Ether ETF issuers on May 23. Consequently, these ETFs will be listed and traded on their respective exchanges. The approved filings include those from prominent firms such as VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise.
While the approval of the 19b-4 filings is a positive indication from the U.S. securities regulator, ETF issuers are still required to obtain approval for their S-1 filings, a process that may take several months, according to Bloomberg ETF analyst James Seyffart, who stated in a post on May 20.
The recent developments related to spot Ether ETFs have led to a significant upward movement in the price of Ether. It is plausible that with further positive developments, Ether’s price could rally to $4,500, which would place it 8% below its all-time high of $4,891 achieved on November 16, 2021.
However, there are notable resistance levels at $4,000 and $4,100 for Ether. If the price surpasses $4,100, it would trigger the liquidation of over $500 million worth of leveraged short positions across all exchanges, according to CoinGlass data.
The approval of ETFs could be the most influential catalyst for Ether’s price during the current bull cycle, potentially propelling it to $10,000, as stated by Andrey Stoychev, the head of prime brokerage at Nexo.
In summary, Arthur Cheong believes that the price of Ether could surge to $4,500 before the official approval of spot Ether ETFs. The recent approval of the 19b-4 filings for several ETF issuers has already had a positive impact on the price of Ether, and further positive developments could lead to a hypothetical rally to $4,500. However, Ether faces resistance at $4,000 and $4,100, and the ETF approval is considered a significant catalyst that could drive the price of Ether to $10,000.