Ethereum Price Forecast: ETH Charges toward $4k after Donald Trump Said This

Ethereum price has now surged 35% in the last two weeks, crossing the $3,900 territory for the first time in 75-days, market data shows two major bullish catalyst in-play for ETH this week. 

Trump Comments Accelerates ETH Price Rally

It has been a week since the US SEC approved Ethereum spot ETFs. At the time of writing on May 29, Ethereum price is trending around $3,850, reflecting a 30% surge within the last 10 days.

More so, ETH price broke the $3,900 barrier twice in the last 48 hours, with the last time that happened being over 75-days ago on March 14.

According to QCP Capital, a prominent crypto market-making firm, ETH’s blistering price action may have stemmed from recent pro-crypto comments made by former US President and current 2024 Republican candidate Donald Trump.

During his campaign run over the weekend, Trump voiced his clearest support of crypto yet in a post on Truth Social that he shared shortly before his scheduled appearance at the Libertarian National Convention.

“I am very positive and open minded to cryptocurrency companies, and all things related to this new and burgeoning industry,”

– Donald Trump via Truth Social 

Positive Speculations Ethereum ETF Inflows Also in Play

While Trump’s positive comments evidently sent bullish ripples through the crypto markets, Ethereum ETFs remain the biggest trending topic among ETH holders and crypto maxis this week.

QCP capital also reiterated this stance in their recent market report update.

“From the price action, it seems that market participants are expressing their bullishness in ETH rather than BTC, especially with the potential institutional demand once the ETH spot ETF starts trading,”

Although the US SEC has green-lighted the ETH ETFs since May 23, they are yet to launch official with more work left to be done on the final S1-filling approvals.

 “While we are structurally positive ETH, we don’t see a major breakout until we have more clarity on the S-1 approvals and get some inflow data, which should only be a matter of time,”  QCP Capital added.

Markets Gearing Up for the Ethereum ETF Inflows

Based on market speculations, it could take from weeks to months — for Ethereum spot ETFs to begin trading. But despite the hiatus, Crypto traders, analysts and investors continue to express optimism.

Simon Peters, a senior analyst for eToro was among the notable figures to state their bullish opinions on Ethereum ETFs this week.

“With the 19b-4s out of the way, it could be an opportunity now for savvy crypto investors to buy Ethereum in anticipation of the S-1s being approved, front-running the ETFs going live and the billions of dollars potentially flowing into these.” – Simon Peters (Senior Market Analyst, eToro)

As for the amount of expected inflows, traders are anticipating that it might be in the region of 15-30% of what the Bitcoin ETFs saw. At the time of writing all 10 newly-launched Bitcoin ETFs currently hold a cumulative BTC holdings worth over $58 billion all acquired within 5 months.

To a large extent, it appears the ETH ETF approvals came at a surprise, quicker than most issuers expected, leading to the documentation delays ahead of the impending launch.

ETH Price Forecast: $4k Breakout Looming

At the time of writing Ethereum price is trading at $3,840 and facing significant resistance within the $3,820 and $3,945 channel, where 2 million addresses had acquired 1.7 million ETH.

However, once that barrier is overcome, Ethereum price has the potential to stage a decisive breakout above $4,000 as the next key resistance lies around $4,278 territory.

Conversely, in the event of a major correction phase, ETH bull could mount a short-term support buy-wall around the $3,700 level to avoid losing the upward momentum.