Ethereum (ETH) Poised to Rise to $3,400, Analyst Predicts Ahead of ETF Approval U.Today

© Reuters. Ethereum (ETH) poised to rise to $3,400, analyst predicts ahead of ETF approval

U.Today – The cryptocurrency market is excited by famous crypto analyst Pentoshi’s expectation of a potential rally (ETH) to reach $3,400. The catalyst for this optimistic forecast is the expected approval of spot Ethereum Exchange-Traded Funds (ETFs) in the coming year.

Earlier this year, major asset management players, including Ark Invest and 21Shares, filed spot Ethereum ETF applications for the US Securities and Exchange Commission (SEC). If approved, these ETFs could pave the way for increased institutional participation and capital inflows into the Ethereum market.

Increase in ETF approvals

In a tweet, Pentoshi said he was expressing bullish sentiment about the ETF when it was trading between $25,000 and $28,000. He predicted a similar situation with the Ethereum ETF in 2024. According to him, regardless of one’s beliefs, it all boils down to game theory.

As the approval date approaches, the analyst speculates that holders may be less inclined to sell their Ethereum, while others may feel compelled to enter the market, putting upward pressure on the price. Pentoshi pointed out that the 2.7xx and $3400 numbers were potential scenarios for the price of Ethereum.

According to the latest market data, the current price of Ethereum is $2,281, representing a marginal decrease of 0.37% in the last 24 hours. The market is now awaiting a regulatory decision regarding the Ethereum ETF, with the potential approval seen as a crucial factor in determining the short- to medium-term trajectory of ETH prices.

While market analysts and enthusiasts closely monitor developments in the ETF approval process, the crypto community remains divided on the potential impact of such regulatory decisions. Some believe the approval of the ETF will act as a strong catalyst for Ethereum’s price and open new avenues for institutional investment. Others warn that market reactions can be unpredictable and emphasize the need for careful analysis and risk management.

This article was originally published on U.Today