Ethereum

Chair

Momentum

<p>The post <a href="https://coinpedia.org/news/why-is-the-ethereum-eth-price-up-today/">Why is the Ethereum (ETH) Price up Today?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p><a href="https://markets.coinpedia.org/ethereum/" target="_blank" rel="noreferrer noopener">Ethereum</a> (ETH) surged to a two-month high of $3,700, rising over 18% on May 20, fueled by speculation about a <a href="https://coinpedia.org/price-analysis/top-altcoins-to-keep-a-close-eye-on-amid-the-hype-on-spot-ethereum-eth-etf-approval/" target="_blank" rel="noreferrer noopener">spot Ethereum ETF approval</a>. Bloomberg analyst Eric Balchunas increased the approval odds from 25% to 75%, citing political pressure on the U.S. SEC and the SEC’s previously limited engagement with ETF applicants. So do we see ETH ETF approval this year? Let’s find out the possibilities.&nbsp;</p> 
<h2 class="wp-block-heading" id="h-sec-s-stance-and-market-reactions"><strong>SEC’s Stance and Market Reactions</strong></h2> 
<p>Balchunas revealed that the SEC is encouraging exchanges like the NYSE and Nasdaq to update their ETF filings, though there’s no official confirmation. Nate Geraci noted that the SEC’s decision on the ETF is still pending and may delay VanEck’s Ethereum spot ETF decision beyond the May 23 deadline. This allows the SEC to review the complexities and risks of Proof-of-Stake (PoS) cryptocurrencies.</p> 
<h2 class="wp-block-heading" id="h-analyst-updating-eth-etf-predictions"><strong>Analyst Updating ETH ETF Predictions</strong></h2> 
<p>In line with the SEC, analysts Seyffart and Balchunas <a href="https://x.com/EricBalchunas/status/1792636523050906102" target="_blank" rel="noreferrer noopener">updated </a>their predictions about the SEC’s decision on spot Ether ETFs, <a href="https://x.com/JSeyff/status/1792637403682701422" target="_blank" rel="noreferrer noopener">suggesting </a>the SEC might approve them instead of denying them as previously expected. This shift is based on recent SEC filings, statements from SEC Chair Gary Gensler, and insider reports indicating political pressure on Democrats to support crypto. Seyffart noted the issue’s growing political nature and hinted at more related filings soon, highlighting the potentially significant impact on the crypto community if the approval happens.</p> 
<h2 class="wp-block-heading" id="h-impact-on-eth-options-expiry"><strong>Impact on ETH Options Expiry</strong></h2> 
<p>Meanwhile, rumors about the Ethereum ETF have heavily influenced the upcoming $3 billion ETH options expiry. On Deribit, the Ether option’s open interest for May 24 is $867 million; for May 31, it’s $3.22 billion, contrasting with CME’s and OKX’s open interest. Deribit’s call-to-put ratio shows a preference for call options, indicating bullish sentiment. </p> 
<p>If ETH stays above $3,600 by May 24, only $440k in put options will be exercised, benefiting call option holders with $397 million in open interest. Similarly, for May 31, 97% of put options are priced at $3,600 or lower, becoming irrelevant if ETH trades above this level. The net open interest could favor call options by $1.92 billion if ETH reaches $4,550, or by $1.44 billion at $4,050.</p> 
<h2 class="wp-block-heading" id="h-bullish-momentum-and-market-strategies"><strong>Bullish Momentum and Market Strategies</strong></h2> 
<p>In short, Ether’s unexpected price increase has surprised option traders, benefiting bullish strategies. These profits will likely be reinvested, keeping ETH’s price momentum positive after the expiry. Traders might use complex strategies with different expiry dates to optimize their positions, though the exact impact is hard to predict.</p> 
<p>In addition, United States lawmakers are considering pro-crypto bills like the <a href="https://coinpedia.org/news/how-the-fit21-act-aims-to-simplify-u-s-cryptocurrency-regulations/" target="_blank" rel="noreferrer noopener">FIT21 Act</a> and the CBDC Anti-Surveillance State Act. Democrat leaders not opposing these bills signals positive support for the crypto industry. Additionally, industry stakeholders are backing the FIT21 Act, advocating for its passage to spur innovation and growth in the crypto sector.</p> 
<p>Also Check Out : <a href="https://coinpedia.org/price-analysis/ethereum-price-prediction-will-eth-price-hit-new-ath-by-may-end/">Ethereum Price Prediction: Will ETH Price Hit New ATH By May End?</a></p>

Why is the Ethereum (ETH) Price up Today?

Table of Contents

CoinPedia News

Other articles published on May 21, 2024

5 Best Cheap Crypto to Buy Now Under 1 Dollar May 21 – EOS, Ethena, Hedera

Predicting the Next Crypto Bull Run

Meme Coin Price Predictions: PEPE and BONK Eye New Highs Following Positive ETH ETF News

Sandbox Partners with Bitkub Blockchain

Injective Unveils Ethereum Layer-3 Network

Sui Sets New Standard for Blockchain Transaction Speeds

Join our free newsletter for daily crypto updates!