Amid the current developments surrounding the potential chances of a spot Ethereum ETF approval, the Ethereum (ETH) price rallied more than 30% in the last 2 days shooting all the way past $3,800 levels. On-chain data shows that this is the most bullish crowd sentiment in Ethereum since last September 2023.
On-chain data provider Santiment reveals that the number of small Ethereum wallets, holding 10 or fewer ETH, has reached an all-time high of 121.74 million. In contrast, “smart money” wallets, holding between 10 and 10,000 ETH, have decreased by 5.8% over the past year, while large whale wallets, with over 10,000 ETH, have declined by 10.6%.
This clearly shows that big players have yet to participate in this market rally. If so, it could easily lead to an ETH price surge above $4,000 thus targeting new all-time highs further.
The recent Ethereum price rally is primarily driven by anticipation of an Ethereum ETF approval and significant spot buying activity on Coinbase. While some of the big players like Standard Chartered expect the approval to come by this week, other market analysts believe that it will take a few more weeks for the approval.
As of press time, Ethereum is trading at $3,758 with a market cap of $452 billion. Ethereum’s price is approaching high-time-frame resistance at $3850-$4050. Despite higher demand for Bitcoin, its price dropped following the ETF news., noted popular analyst CryptoAceBull.
Similarly, while the Ethereum ETF approval would be positive in the long term, potentially driving ETH to $12k within a year or two, short-term predictions indicate a possible rejection in this resistance zone, with a potential test at $3600. Consolidation around $3900-$4000 could push ETH to a new all-time high.
the analyst also added that the ETH/BTC pair is nearing its previous consolidation level. If it holds above 0.055, altcoins could perform well in the short term. However, a rejection at this level could trigger a short-term downtrend for altcoins. The analyst predicts that ETH/BTC will bottom out in Q2, potentially leading to a significant move in Q3 and Q4.
Ethereum co-founder Joe Lubin, who’s also the founder of crypto infrastructure firm ConsenSys stated that an approval of spot Ether ETF could lead to a “floodgate” of demand for Ethereum. “There’s going to be a pretty large amount of natural, pent-up pressure to purchase Ether” through the ETFs, he said while speaking to DLNews.
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