During the early hours of May 27, the price of Ether (ETH) is rapidly approaching the $4,000 mark, experiencing a 5% increase in the past 24 hours. This surge has ignited optimism among investors, as they anticipate that it could mark the beginning of Ether’s post-ETF approval rally.
According to data from Cointelegraph, the asset witnessed a nearly 5% gain, reaching an intra-day high of $3,930. Interestingly, ETH had previously reached a similar price just a few days ago when spot Ether ETFs were first approved on May 23.
This recent development has propelled ETH to a weekly gain of 27.5%, surpassing Bitcoin (BTC), which has only seen a 3.8% increase during the same period.
Analyst Matthew Hyland, with a following of 143,000 on X, confirmed that ETH has exhibited a bullish divergence and a break of the downtrend accompanied by an increase in volume. These factors further validate the breakout.
As a result of this significant weekly move, various industry analysts and observers have made predictions about the future of ETH. Arthur Cheong, the founder of DeFiance Capital, forecasted that ETH would reach $4,500 even before spot ETFs are launched. Cheong conducted a poll on X, asking his followers about their ETH allocations, and discovered that almost half of the 5,800 respondents had between zero and 25% allocation. This led Cheong to comment on the significant underallocation of ETH.
In addition, Ethereum educator Anothny Sassano predicted that within the next six to twelve months, Michael Saylor, the founder of MicroStrategy, would invest in ETH.
It is worth noting that Bitcoin experienced a surge of more than 70% and reached an all-time high in the two months following the approval of spot BTC ETFs in the United States. If ETH follows a similar trajectory, it could potentially reach an all-time high of around $6,000 by the end of July.
Ether’s significant surge has also had an impact on the crypto ecosystem. The total value locked in decentralized finance (DeFi) has returned to its highest level in two years, amounting to $117 billion, with 60% of that value locked on the Ethereum network, according to DefiLlama. Additionally, Ethereum layer-2 networks are approaching an all-time high in total value locked, currently standing at around $47 billion, as reported by L2beat.
In conclusion, the price increase of Ether represents a historic turning point for the crypto market. With the approval of Ethereum ETFs on the horizon, the future of ETH looks promising.