Renowned trader and economist Alex Krüger predicts that Ethereum (ETH) is on track to reach new all-time highs (ATHs) thanks to a significant driving force. Krüger, who has a dedicated following of 175,400 on the social media platform X, suggests that the potential approval of a spot ETH exchange-traded fund (ETF) as early as this week could cause the leading altcoin to skyrocket.

The likelihood of an ETH ETF approval by the U.S. Securities and Exchange Commission (SEC) has suddenly increased this week, resulting in a 20% surge in ETH’s value over the past day.

Krüger also anticipates that Bitcoin (BTC) will experience a substantial increase in value before the end of 2024. He outlines his base case scenario, which involves Bitcoin performing exceptionally well by the end of the year, while Ethereum initially underperforms due to an ETF rejection. However, Krüger expects Ethereum’s performance to improve after the U.S. elections, as he believes it will lead to the removal of SEC Chair Gary Gensler and subsequent ETF approval in 2025.

If an ETH ETF is approved this week, it would accelerate this timeline. Krüger explains that the recent market repositioning and short positions closing were a result of the unexpected approval, and that inflows from an approved ETF would push ETH to new ATHs. He urges caution against betting against an approval, as the market has not priced it in. In fact, he suggests that the market sentiment may shift back to viewing ETH favorably, with the altcoin leading the way for a significant period of time. Even after recent developments, ETH/BTC is still in the red year-to-date, indicating room for further growth.

However, Krüger warns that if the ETF is rejected, it could have dire consequences for Ethereum. He advises keeping alerts on during U.S. hours until the 23rd of this month.

At the time of writing, Ethereum is trading at $3,809, reflecting a more than 22% increase in value over the past 24 hours. ETH reached its ATH of approximately $4,900 in November 2021.

Krüger speculates that the SEC is facing political pressure to approve the ETH ETF applications due to the political climate surrounding the U.S. presidential election in November. He believes that this change in the SEC’s stance is politically motivated, likely influenced by the Democratic party leadership and prompted by former President Trump’s sudden support for cryptocurrencies.

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