Recently, Ethereum is the talk of the town among traders. The data from Santiment shows that Ethereum is trending higher than any other topic in the crypto community. People are excited about Ethereum because they think the Securities and Exchange Commission (SEC) will reject proposals for spot Ethereum Exchange-Traded Funds (ETFs) set for May.
The Catalysts Fueling Ethereum’s Surge
There have been two key events since mid-October that have fueled a surge in crypto enthusiasm. First, on January 11th, 2024, spot Bitcoin ETFs were approved, which greatly increased trading opportunities. Second, on April 19th, 2024, the Bitcoin halving occurred as expected. Now that these milestones are behind us, traders are waiting for good news about other leading crypto assets so the bullish trend can continue.
The possibility of spot ETFs materializing for Ethereum holds profound implications for the second-largest cryptocurrency and the broader altcoin market. Bitcoin spearheaded much of the market surge during the October to March bull run, prompting hopes that Ethereum and its peers would soon receive a similar boost. However, prevailing sentiments suggest that the SEC might not be ready to greenlight alternative assets.
Data analytics findings reveal that prices move opposite to what people think. The reason more cryptocurrencies fell from the highest recorded point on April 14th is because of increasing Fear, Uncertainty and Doubt (FUD) among traders who are eager for quick results paradoxically benefitting non-Bitcoin assets.
In view of this, there may be a stronger than usual chance for relief bounces to gain ground in the coming week. Those with a stake in Ethereum or looking to get into it should expect increased volatility as every new update draws closer to the SEC decision in May.
If the Securities and Exchange Commission softens its position and surprisingly gives the green light, Ethereum’s value could immediately go up, but this could also set the stage for a mid-range decline fueled by impulsive FOMO trades. As things keep changing, people have always said: “Buy the rumour and sell the news.” Whenever people usually choose to sell after hearing rumours, this often becomes a good time for investors who go against the trend to take advantage of the news.
Related Reading | Stellar (XLM) Potential Surge: Navigating Macro Trends Towards $1.8 – $10 Range