Will Ethereum Spot ETF Listing Shoot the Price Above $4k?

Ethereum, the second largest cryptocurrency by market cap, has witnessed a significant drop in value following a recent general market downturn. The decline which saw millions liquidated from the crypto market within a short time, sent the price of Bitcoin, the flagship cryptocurrency, crashing to $66,000.

Consequently, the total crypto market cap has lost 3.74% at the time of writing to rest at $2.43 trillion. However, regardless of the bearish movement, Ethereum investors are optimistic about a potential rally that could send the price of the token above $4,000. But how possible is this?

Is Ethereum Price to $4k Feasible?

According to fresh data from CoinMarketCap, Ethereum has suffered a notable drop in the last 24 hours. Per the data, the coin is currently trading at $3,475, representing a 2.48% decline within the recorded time. In hindsight, ETH has lost about 9.28% in the last seven days but has significantly increased by 18.06% in the last 30 days.

Earlier today, Coinfomania reported that Gary Gensler, the Chairman of the Security and Exchange Commission (SEC) hinted that the Ethereum Spot ETF S-1 is likely to be approved by the end of Summer, precisely between June and September ending. If the SEC pulls through, the listing could lead to a large inflow of institutional funds into the product

This information has birthed a wave of optimism among investors as the prospect of a price rally above $4,000 begins to circulate. Ethereum investors are hoping that the price of Ethereum will mirror the success of Bitcoin after a spot ETF was approved for the asset on January 11. The approval of a spot ETF pushed the value of BTC to a new all-time high of $73k with billions of funds flowing into the product from issuers.

Previously, a 19b-4 filing was approved by the SEC, which catalyzed the surge of ETH above 22% to trade above $3,700 underscoring the potential impact of a listing by the regulatory watchdog. Ultimately, the possibility of ETH climbing above $4,00 is dependent on several factors such as general market sentiment and the approval of a spot ETF S-1.