Ethereum Up 16% on Hopes for ETF, Grayscale CEO Exits

Ethereum’s (ETH) price surged by over 16% on Monday after Bloomberg analysts raised the likelihood of a spot Ethereum ETF approval from 25% to 75%. This optimism comes just days before the Securities and Exchange Commission (SEC) is set to make its decision on the ETF applications.

Adding to the market’s uncertainty, Grayscale’s CEO announced his resignation, which has further complicated the outlook for the upcoming SEC ruling. If the spot Ethereum ETFs are rejected, Ethereum could face challenges at critical support levels.

Daily Market Movements: Uncertainty Surrounds Ethereum ETF Approval

This week, the market anticipates increased volatility for Ethereum (ETH) as it awaits the SEC’s decisions on critical ETF applications. The SEC is set to rule on VanEck’s spot Ethereum ETF application on May 23 and Ark 21Shares’ Ethereum ETF application on May 24.

Bloomberg analysts Eric Balchunas and James Seyffart have unexpectedly raised the probability of Ethereum ETF approval from 25% to 75%. According to Balchunas, the SEC “could be doing a 180” under mounting political pressure.

This shift follows several pro-crypto statements from U.S. presidential candidate Donald Trump earlier this month, leading to speculation that President Joe Biden might adopt a pro-crypto stance to gain support from the crypto community.

Nate Geraci, President of the ETF Store, explained in an article on X the intricacies of the SEC approval process for ETFs. He noted that the SEC must approve both 19b-4 filings (exchange regulation amendments) and S-1 filings (registration statements) for an ETF to launch.

Adding to the market’s uncertainty, Grayscale CEO Michael Sonnenshein announced his resignation in an X post on Monday. This follows Grayscale’s earlier withdrawal of its proposal for a futures Ethereum ETF in May.

From a technical perspective, Ethereum was trading around $3,566 on Monday, up more than 16% on the day. As the SEC’s decision on VanEck’s application approaches, investors should brace for significant market fluctuations. Ethereum could test critical support levels if the ETF applications are denied.

“Investors should prepare for a bumpy ride this week,” Geraci stated, highlighting the potential for extreme volatility surrounding the SEC’s impending decisions.