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Will Ethereum Price Hit $10k With Spot ETF Approval? Insights From Chen, Bitget MD

Prices in the crypto market are rising again and investors are beaming. This comes after a chaotic time when Bitcoin price fell from $49,000 to below $39,000. Ethereum price, the second-biggest crypto, also suffered a big drop from over $2,700 to $2,200. But now ETH is recovering, as it challenges the resistance at $2,500 with the help of an upward trend.

Spot ETH ETF To Bring Additional Liquidity

The launch of the first spot exchange-traded funds (ETFs) in the US sparked a lot of excitement with speculators turning their compass to Ethereum. Although prices fell immediately after the approval, the future impact of the products on Bitcoin cannot be overemphasized.

Spot ETFs make it easier for traditional investors seeking exposure to unconventional assets like Bitcoin without having to physically manage them.

According to Gracy Chen, “This increased accessibility could attract a broader range of investors, including institutional investors who might prefer traditional investment tools.”

Chen is the Managing Director of Bitget exchange and believes “ The introduction of an Ethereum spot ETF could bring additional liquidity to the Ethereum market, making it easier for investors to buy and sell ETH.”

There was a significant increase in liquidity following the Bitcoin ETF which kept the price relatively buoyant with fewer fluctuations.

However, the elephant in the room when it comes to having a spot ETH ETF is the SEC’s ambiguous approach to Ethereum. The regulator according to Chen, “has not explicitly stated that ETH is not a security, but it hasn’t classified it as one either.” People use Ethereum for investment, which could mean it’s a security but the token is also “used as a daily exchange medium across protocols),” mirroring the qualities of a currency.

Beyond the speculation and doubts, greenlighting a spot ETH ETF would enhance positive sentiment, especially for altcoins. The development would solidify Ethereum’s status “as a legitimate and investable asset class, potentially boosting investor confidence,” Chen added.

Ethereum Price Breaks $2,500 Barrier

The bullish outlook in the market since Wednesday has not only kept Ethereum price buoyant but also on an aggressive north-facing trajectory. Moving averages like the 200-day EMA, the 50 EMA, and the 20 EMA are catching up to the price, which currently holds at $2,518 and reinforcing the bullish grip.

Ether price has also ascended out of a rising channel, setting a stronger pace towards yearly peak highs at $2,700.

Ethereum price chart | Tradingview

Traders should be on the lookout for a daily close above $2,500 because failure to which, ETH price may drop to sweep liquidity toward support at $2,400.

The upcoming Ethereum Dencun upgrade could also ignite a rally, this time, with Ether eyeing beyond $3,000. Developers this week launched the upgrade geared towards improving scalability and reducing transaction fees for layer-2 protocols on the third and final testnet Holesky.

Next will be the mainnet launch. Although the exact dates have not been announced, expectations are that it will take place in late February or early March.

It might be too early to foresee the impact of the spot ETF because according to Chen, “the price primarily depends on supply and demand, and it is impossible to determine when Ethereum will surpass, or confirm the release of locked tokens during the period.”

The post Will Ethereum Price Hit $10k With Spot ETF Approval? Insights From Chen, Bitget MD appeared first on CoinGape.

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