In a dramatic turn of events, the price of Ether (ETH) surged on Monday as traders speculated on the imminent approval of Ethereum Exchange-Traded Funds (ETFs) by the Securities and Exchange Commission (SEC). ETH recorded gains of over 10%, trading in the $3,400 region, following rumors of a potential SEC u-turn on ETF approval.

Bloomberg ETF analysts Eric Balchunas and James Seyffart raised their approval odds to 75%, citing chatter suggesting a reversal in SEC sentiment. With deadlines looming for ETF applications, market anticipation for approval this week has intensified, contrary to earlier expectations of rejections.

The prospect of Ethereum ETF approval marks a significant shift in market sentiment, with investors betting on easier institutional access to Ether. Similar to the impact of Bitcoin ETF approvals, this development is expected to drive long-term price appreciation for Ether.

The recent surge in Ether price has broken out of a downward trend channel since mid-March, clearing major moving averages and finding robust support at its 2024 uptrend. Technical analysis suggests a bullish outlook, with near-term targets set at April highs above $3,700 and a potential retest of March highs surpassing $4,000.

Market sentiment has been buoyed by positive economic indicators, including US jobs and CPI inflation data, easing concerns about overheating. Spot Bitcoin ETF inflows have surged, indicating growing institutional interest, while discussions of retesting Bitcoin's record highs have gained traction.

Ethereum's price had previously lagged behind Bitcoin, but the anticipation of Ethereum ETF approval could propel it back to record highs near $4,900. Traders are closely monitoring developments, including Nvidia earnings and FOMC minutes, for potential catalysts driving further upside movement.

The possibility of Ethereum ETF approval underscores the dynamic nature of the crypto market, with regulatory decisions shaping investor sentiment and market trends. As traders await the SEC's decision, all eyes remain on Ether's price trajectory and the broader implications for the cryptocurrency landscape.