Renowned trader and economist Alex Krüger predicts that Ethereum (ETH) will reach new all-time highs (ATHs) due to a significant catalyst. Krüger, who has a strong following of 175,400 on the social media platform X, believes that the approval of a spot ETH exchange-traded fund (ETF) could propel the top altcoin to new heights, and this approval could happen as early as this week.

The odds of the U.S. Securities and Exchange Commission (SEC) approving an ETH ETF have suddenly increased, leading to a 20% rally in ETH’s value in the past day. In addition, Krüger anticipates that Bitcoin (BTC) will experience a substantial increase before the end of 2024.

Krüger’s base case scenario involves Bitcoin reaching higher prices by the end of the year, while Ethereum underperforms due to an ETF rejection. However, he believes that Ethereum will outperform after the U.S. elections, as it could 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 shorts closing were a result of the unexpected approval, and once the inflows start, ETH would reach new ATHs. He advises against fading an approval, as it is not yet factored into the market and could lead to ETH leading the market for a while. He also mentions that even after today, ETH/BTC is still in the red for the year.

However, Krüger warns that if the ETF gets rejected, it could have significant negative consequences. He advises investors to remain alert until the 23rd of this month. At the time of writing, Ethereum is trading at $3,809, representing a 22% increase in the last 24 hours. Its ATH was recorded in November 2021, when it reached approximately $4,900.

Krüger suspects that the SEC’s apparent change in stance regarding ETH ETF applications is politically motivated, with the upcoming US presidential election in mind. He believes that the pressure to approve the ETF applications stems from the Democratic party’s top leadership, possibly triggered by former President Trump’s sudden support for cryptocurrencies.

In conclusion, Krüger’s insights suggest that Ethereum could experience significant growth if an ETH ETF is approved, but investors should remain cautious as a rejection could have adverse effects.