Will SEC Approve Ethereum ETFs? Ether (ETH) Price Explodes Higher Amid Rumors of SEC U-Turn

The Ether (ETH) price exploded higher on Monday as traders bet that the SEC will approve Ethereum ETFs as soon as this week following the emergence of rumors of a major SEC u-turn.,ETH was last trading with gains of more than 10% in the $3,400 region.,Bloomberg ETF analyst Eric Balchunas tweeted on X that he and fellow analyst James Seyffart had increased their approval odds to 75% after hearing chatter that the SEC could be doing a “180”.,With deadlines to approve, deny, or extend some ETF applications coming as soon as Thursday, approval could come this week.,Before the latest rumors of an SEC u-turn, most had expected that
Ethereum ETF rejections would come.,Indeed, the
SEC has reportedly been looking to classify Ether as a security in recent months.,

Bloomberg analysts Balchunas and Seyffart have a great track record of predicting crypto ETF approvals.,They vocally championed the idea that
spot Bitcoin ETF approvals were coming in 2023, despite market pessimism at the time.,It’s no wonder, then, that a major repricing is currently underway in the Ether market. Investors are aggressively upping their bets that the SEC will approve spot Ethereum ETFs, pushing the price substantially higher. Why?,Because the approval of Ethereum ETFs will give institutional investors much easier access to gain exposure to Ether.,Just as happened with
Bitcoin, this will likely substantially boost the Ether price over the long term.,

The latest pump higher in the Ether price has seen it snap out of a downward trend channel that had been in play since mid-March.,ETH has also cleared its major moving averages and recently found strong support at its 2024 uptrend.,Technical analysis suggests the near-term outlook for the Ether price is bullish.,The next upside target is the April highs above $3,700. Beyond that, a near-term test of March highs above $4,000 is likely.,If Ether ETFs are approved, it will occur at a time when market sentiment is already improving.,Recently released
US jobs and
CPI inflation data for April reduced fears about the economy running too hot.,It boosted hopes that the Fed will still be able to cut interest rates multiple times this year.,Spot Bitcoin ETF inflows also picked up last week amid over 500 asset managers revealing ETF exposure via 13F filings.,Traders were already talking about a retest of Bitcoin’s record highs. That talk is only likely to grow, with Ethereum ETFs likely coming this week.,Nvidia earnings and FOMC minutes could also provide catalysts for further upside movement.,The Ether price had been lagging BTC before Monday’s pump.,A continued improvement in market sentiment, combined with Ethereum ETFs, could be just the thing to vault the Ether price back to its record highs near $4,900.,Will SEC Approve Ethereum ETFs?