Cheong’s Bold Bet on Ethereum

ETH ETFs may start trading by July or August, but the market is already predicting a bullish trend. Arthur Cheong, CEO of DeFiance Capital

Arthur Cheong, the CEO of DeFiance Capital, is predicting that the price of Ethereum (ETH) will reach $4,500 before spot ETF trading begins.

Cheong believes that the U.S. approval of spot Ethereum ETFs will attract many retail investors, similar to the 2017 crypto boom. Currently, over 70% of spot Bitcoin ETF positions are held by retail investors, and Cheong expects a similar trend for Ethereum.

A survey conducted by WuBlockchain in the Chinese community shows that 58% people believe that ETH can rise to $10,000 and even more in this cycle.

Cheong's prediction has sparked discussions among cryptocurrency enthusiasts and investors. The potential increase in Ethereum's value is seen as a significant development in the cryptocurrency market. However, these predictions remain speculative, and actual market performance may vary.

Despite the anticipation, Ethereum’s price has struggled to maintain momentum. The U.S. SEC has approved only the 19b-4 requests for Ether ETFs’ launch, with the crucial S-1 forms still pending authorization.

Some analysts believe that the lack of staking ability and on-chain utility in Ethereum ETFs, coupled with the recent approval, may contribute to the limited price movement. As a result, ETH is seen trading within a range, with key support and resistance levels to be watched closely.

If the support holds, buyers will likely challenge the resistance levels in the coming week or two. A breakout from these levels could accelerate the bullish momentum, targeting $4,500 and potentially reaching $4,900.

At the same time, this interim milestone left the market unimpressed, with Ether's price dropping from $3,830 to $3,670 immediately after the approval. Currently, Ether is trading at $3,743 on major spot exchanges, showing a modest 0.89% increase in the last 24 hours, underperforming the market’s benchmark of 1.9%.

Technically, the ETH price being above the 20, 50, 100, and 200-day EMAs is a sign of a strong bullish trend. However, the ADX at 33% suggests the trend might need a pullback to regain strength.