Why does micelle formation take place when soap is added to water ? Will a micelle be formed in other solvents such as ethanol also ?

A soap is a sodium or potassium salt of long chain fatty acids. It has one polar end and one non-polar end. Polar end is hydrophilic in nature whereas non-polar end is hydrophobic. When soap is added to water, it forms a colloidal suspension in water in which the soap molecules cluster together to form spherical aggregates called micelles. In a soap micelle, soap molecules are arranged radially with hydrocarbon ends directed towards the center and ionic ends directed outwards.

No, micelle will not be formed in other solvents such as ethanol.