Renowned trader and economist Alex Krüger predicts that Ethereum (ETH) will reach new all-time highs (ATHs) thanks to a significant catalyst. Krüger, followed closely by traders, informs his 175,400 social media followers on X that the approval of a spot ETH exchange-traded fund (ETF) as early as this week could cause the leading altcoin to skyrocket. The chances of the US Securities and Exchange Commission (SEC) approving an ETH ETF have suddenly increased, leading to a more than 20% rally in ETH over the past day.
Krüger also believes that Bitcoin (BTC) will experience a substantial increase before the end of 2024. He outlines his base case scenario, which involves Bitcoin’s value rising significantly by the end of the year. However, he expects Ethereum to underperform due to an ETF rejection. He anticipates that Ethereum will then start overperforming after the US elections, as the removal of SEC Chair Gary Gensler could lead to ETF approval in 2025. However, if an ETH ETF is approved this week, it would accelerate this timeline. The recent market repositioning and shorts closing on May 21st were a result of the unexpected approval. Krüger predicts that inflows from an ETF approval would catapult ETH to ATHs. He advises against doubting the approval, as the market is not yet fully pricing it in. In fact, he suggests that the market may view it as a stroke of genius, with Ethereum leading the way. Even after the recent rally, ETH/BTC is still in the red for the year, indicating further potential for growth.
Krüger warns that if the ETF gets rejected, it could result in significant losses. He advises staying alert until the 23rd of May, especially during US trading hours. Ethereum is currently trading at $3,809, experiencing a more than 22% increase in the last 24 hours. Its all-time high was reached in November 2021 at around $4,900.
Krüger suspects that the SEC is facing political pressure to approve the ETH ETF applications, which stems from the political landscape surrounding the US presidential election in November. He believes that the apparent change in the SEC’s stance was politically motivated, possibly influenced by the Democratic Party and triggered by former President Trump’s endorsement of cryptocurrencies.
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