Closely followed trader and economist Alex Krüger believes Ethereum (ETH) is headed to new all-time highs (ATHs) due to one key catalyst.
Krüger tells his 175,400 followers on the social media platform X that a possible approval of a spot ETH exchange-traded fund (ETF) as early as this week could send the top altcoin soaring.
The odds for an ETH ETF approval by the U.S. Securities and Exchange Commission (SEC) suddenly increased this week, and ETH rallied by more than 20% in the past day.
He also believes Bitcoin (BTC) will be “much higher” before the end of 2024.
“My base case scenario has been:
- Bitcoin much higher into year-end.
- Ethereum underperforming due to an ETF rejection.
- Ethereum over-performing from the US elections onwards, as elections would lead to a [SEC Chair Gary] Gensler removal and subsequent ETF approval in 2025.
An ETH ETF approval this week would push everything forward. [May 21st’s] move was just the market repositioning and shorts closing (see open interest chart below), as almost nobody had been expecting an approval. Then would come the inflows, which would push ETH into ATHs. Do not fade an approval. It is not even remotely priced in. The market would likely shift back into ‘you really are a genius mode.’ With ETH leading for a while. Even after today ETH/BTC is still red year-to-date. Time for it to continue much higher.
Note: even if now unlikely, if the ETF gets rejected, we are in for a world of pain. Keep alerts on during US hours until the 23rd.”
Source: Alex Krüger/X
Ethereum is trading for $3,809 at time of writing, up more than 22% in the last 24 hours. ETH reached its ATH of about $4,900 in November 2021.
Krüger suspects the SEC is facing political pressure to approve the ETH ETF applications due to the politics around the US presidential election in November.
“Many will disagree but I do believe the SEC’s seeming change in stance was politically driven, coming from the top of the Democratic party and with elections in mind. Possibly triggered by Trump’s sudden support of crypto, forcing the Dems hands.”
Generated Image: Midjourney
Shutterstock/Tomasz Makowski
