Ethereum Soars Over 24%, Hits Two-Month High of $3,790

• Ethereum surged 24.50% to $3,790, driven by ETF approval anticipation.
• US lawmakers urged the SEC to approve spot Ethereum ETFs.
• Traders are bullish, pushing ETH near $4,000 with strong market momentum.

Ethereum (ETH) experienced a significant increase of 24.50% in the past 24 hours, reaching around $3,790, the highest level it has achieved in two months. This surge is largely driven by anticipation of a spot Ethereum ETF approval in the US, and traders’ hopes for further price hikes following the approval.

A bipartisan group of US lawmakers has called on SEC Chair Gary Gensler to approve the spot Ethereum ETFs. A letter shared by Balchunas shows that House members are pushing for the SEC to use the same principles applied in the spot Bitcoin ETF approvals.

This advocacy comes in conjunction with the recent passage of the FIT21 crypto bill in the US House of Representatives on May 22, which received bipartisan support from 208 Republicans and 71 Democrats, with 136 opposing. Meanwhile, crypto exchanges and issuers have been updating their 19b-4 forms, preparing for the SEC’s decision.

Traders are notably bullish, with excitement building around the potential launch of a spot ETH ETF. On May 23, Ethereum’s price neared $4,000. Analysts have observed an increase in Ethereum’s market dominance, indicating heightened enthusiasm about the ETF approval.

From a technical perspective, the RSI at 71 indicates strong bullish momentum for ETH prices. Important levels to watch include the psychological barrier at $4,000 and the March 11 high of $4,091. However, with the RSI indicating overbought conditions, there is a possibility that the ETF approval could trigger a “sell-the-news” reaction, as traders might look to take profits.

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