Ethereum Surges to Highest Level Since 2021 Amid Spot ETF Optimism
Traders were in a hurry to take profits on Thursday and it finally surged to a level not seen since late 2021. The second largest cryptocurrency rose 9.9 percent to trade at $4,699.15 and looks set for further gains. E-coin prices are closely tied with a successful spot ETF listing in the United States, as the latter has proved in the case of gold this month.
This latest rise in price is coming amid a general upsurge of the crypto market: Bitcoin remains stable just above the $114,000 level and in the face of uncertainty about politics and geopolitical issues. Although there was some heightened risk appetite in traditional markets on Friday, this was by no means uniformly the case.
One reason is that as of this week, President Donald Trump has unilaterally imposed tariffs on Chinese imports from Mexico and more than half a dozen other countries; they vary between 10% and 50%, hitting major economies globally. He also announced a 100% duty for all semiconductors imported into the United States but set this to begin in a few weeks’ time to give firms an opportunity to wind down operations or ship their already made goods out of the country before then.
Despite these macroeconomic pressures, Ethereum has shown resilience. According to an analysis featured in Yahoo Finance, the expectation of a spot ETF approval has played a significant role in Ethereum’s recent price movements. The market appears to be pricing in the regulatory momentum, especially after the SEC’s softened stance on crypto ETFs earlier this year.
With no spot Ethereum ETF to date formally approved by the SEC, various applications are still under review.
Should these products be given the green light, they might in fact result in far higher institutional investment in ETH, as occurred with the launch of Bitcoin spot ETFs in January 2024.
Zeroing in on the rest of the market, altcoins also rose a bit in small ranges. Solana was up 2%, Cardano 1.9%, while XRP was 1.5% at $2.9951. Certain meme coins also took modest gains; Dogecoin was 2.5 percent higher and $TRUMP token rose 1.6 percent.
Judging by the response of the crypto market, investors appear to be tentatively optimistic. Yet many are waiting for the Federal Reserve’s policy meeting on July 31, when perhaps some further sign on interest rate cuts from this September might emerge. Up to now, longer-duration interest rates have been pressing down on risk assets, including crypto itself.
Conclusion
Ethereum’s rise above $4,600 shows that the market is expecting and prepared for the approval of a potential spot ETF for ETH. While the importance of regulatory clarity cannot be overstated, this latest price surge is a testament to Ethereum’s role in the next stage of crypto market development.
As with all investment strategies, please consult with a financial advisor before putting your capital at risk.
