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

Micelle formation takes place when soap is added to water. This is because when soap is added to water in which dirty clothes are soaked, the two parts of the soap molecule dissolve in two different mediums. The organic tail dissolves in the dirt, grime, or grease and the ionic head dissolves in water. When the clothes are rinsed or agitated, the dirt gets pulled out of the clothes in the water by the soap molecule. In this way, the soap does its cleaning work on dirty and grimy clothes or hands.

The soap molecules actually form a closed structure because of the mutual repulsion of the positively charged heads. This structure is called a micelle.