Ethereum ETF Officially Approved – ETH Price Predicted to Hit $4k Next ?

Ibrahim Ajibade
Published: Apr 15, 2024, 10:19 GMT+00:00

Key Points:

  • Ethereum (ETH) Exchange traded funds have been approved by Hong Kong’s securities regulator on Monday April 15.
  • JP Morgan reports stated that there's 50% chance US SEC could follow suit in May 2024.
  • In the derivatives markets, ETH SHORT traders are on the brink of $240 million liquidations as bulls regain momentum.
Ethereum (ETH) Price Analysis

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Ethereum price surged above $3,250 as Hong Kong’s securities regulator approved ETH Exchange-Traded Funds (ETFs) on Monday April 15. Recent market movements observed in the build up to this landmark event suggests overwhelming expectations of further price upside among Ethereum investors.

Is ETH price on the brink of reclaiming the $4,000 territory?

Spot Ethereum ETFs Approved in Hong Kong

HONG KONG’S securities regulator approved the first spot bitcoin and Ethereum exchange traded funds (ETFs) on Monday (Apr 15), a milestone on the way to becoming Asia’s first city to accept the popular cryptocurrencies as a mainstream investment tool.

In separate statements, two leading fund sponsors, Bosera Asset Management and China Asset Management confirmed they had received regulatory approval from the Hong Kong Securities and Futures Commission (SFC) to launch the ETH ETFs.

The step comes just three months after the US SEC approved 10 ETFs to track spot Bitcoin (BTC) prices. At the time of writing the US-listed Bitcoin ETFs have already drawn roughly $12 billion in net inflows.

Rumors continue to swirl that Ethereum ETF approval in Hong Kong could serve as a litmus test for regulators in other jurisdictions.

Recently, JP Morgan analysts stated that there is 50% chance for SEC to approve ETFs in May 2024 deadline, failure of which could see applicants open legal proceedings against the SEC.

Ethereum (ETH) Price Forecast: $3,500 Resistance at Risk

Ethereum price has surged 2.7% within the daily timeframe, since the ETF approval news from Hong Kong on April 15. However recent trends in the derivatives markets shows that ETH price is now on course to advance towards $3,500.

Coinglass’ Liquidation Map data, which shows the value of leveraged futures contracts active at key price levels also further affirms this optimistic Ethereum Cash price prediction.

As seen below, the number of ETH LONG positions are now towering above the SHORTs by a considerable margin. This signals that derivatives traders have  overwhelming expectations of imminent price gains.

Ethereum (ETH) Price Forecast | Source: Coinglass
Ethereum (ETH) Price Forecast | Source: Coinglass

Ethereum short-traders are now on the brink of losing $ million in potential liquidations if price surge another 20% to reclaim $3,590. In comparison, the bulls could lose over $1.2 billion if prices move in the opposite direction.

Given that the bulls have nearly $1 billion more leveraged positions at stake, ETH price advancing towards $3,600 is the more likely outcome.

If that scenario plays out as expected, the bullish sentiment from the forthcoming Bitcoin (BTC) Halving could drive prices further towards the $4,000 range.

But in the event of another market downturn, the high-leverage could see ETH price slide as low as $3,100 before finding a significant support.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

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