Ethereum ETF Approval Expected In May

Ether Prices Rally, Reaching Highest Value in Over a Year

Ether prices surged on Wednesday, May 18, 2023, reaching their highest value in over a year. The cryptocurrency rallied past the $3,500 level, reaching a peak of $3,612.90 around 3:30 p.m. UTC. This marks a significant increase from Ether's price at the beginning of the day, which was around $3,300.

Speculation Surrounding ETF Approval Drives Price Increase

One of the primary drivers behind today's sudden Ethereum price rise is the speculation surrounding the approval of a spot exchange-traded fund (ETF) in the United States. Bloomberg ETF analysts Eric Balchunas and James Seyffart recently increased their odds of a spot ETF approval in May to 75%. If Ether's price stays above $3,600 on May 24 at 8:00 a.m. UTC, only 440k of the put instruments will be exercised, increasing the likelihood of approval.

Bitcoin Also Rises Amidst Ether's Advance

Bitcoin (BTC) is also adding to its gains alongside Ethereum's advance, now higher by more than 5% and just shy of $43,000. The correlation between the two cryptocurrencies remains strong, and Bitcoin's price often follows Ether's lead.

Ethereum Price Analysis

Meanwhile, Ethereum displays a bullish technical picture. The cryptocurrency has broken above a key resistance level at $3,500 and is now trading above its 50-day moving average. The relative strength index (RSI) is also trending upwards, indicating that there is strong momentum behind the current price move.