A crypto analyst has picked an event that could be the spark for that Ethereum should reach the $3,500 price point. He believes that the second largest cryptocurrency by market capitalization will achieve this Bitcoin “gets its shine.”
How Ethereum will reach $3,500
In a after shared on his X (formerly Twitter) platform, the CEO and founder of MN Trading, Michael van de Poppereferred to the Ethereum Spot ETF filing by Fidelity in his $3,500 price prediction. The crypto analyst seemed to suggest that approval of an Ethereum Spot ETF could push Ethereum’s price to such heights.
His reference to Bitcoin also confirms that this could indeed be Van de Poppe’s ‘thesis’. He talked about Ethereum “going up to $3,500 in the first quarter of 2024” after Bitcoin has had its shine. The “shine” likely refers to the possible approval of a Spot Bitcoin ETF. Some analysts have predicted this that there is a 90% chance that a Spot Bitcoin ETF will be approved by January 10, 2024.
With this in mind, the crypto analyst may believe that the approval of an Ethereum Spot ETF could come not long after the Spot Bitcoin ETF is approved. If that happens, it could cause a massive rally in Ethereum’s price. That could explain why Michaël van de Poppe predicts Ethereum will reach $3,500.
Various asset managers have already registered with the Securities and Exchange Commission (SEC) to offer an Ethereum Spot ETF. However, all eyes seem to be on the SEC’s decision on the pending Spot Bitcoin ETF applications. This could simply be because a final decision is expected on the pending Spot Bitcoin ETF applications, unlike Ethereum’s, which still have a longer review process.
ETH price steadies above $2,000 | Source: ETHUSD on Tradingview.com
Ethereum Spot ETFs may not get the same reception
Historically speakingThere is reason to believe that Ethereum Spot ETFs may not enjoy the same reception as Spot Bitcoin ETFs have to date. This is based on the fact that there was a strong comparison in the numbers when the futures ETF of both crypto tokens was launched.
Bitcoin futures ETFs have been around since 2021, with ProShares Bitcoin Strategy (BITO) ETF being the first to launch. In the meantime, Ethereum futures ETFs only launched this year. Most interesting is the trading volume that BITO saw on its launch date compared to all Ethereum futures ETFs on their launch date.
BITO is reported having seen a trading volume of over $1 billion in the first two days of launch. On the other hand, the total trading volume for Ether ETFs on their launch day was just under $2 million.
Featured image from Tron Weekly, chart from Tradingview.com