The approval of spot Bitcoin ETFs in the US led to a 70% surge in Bitcoin prices in two months. If history repeats, Ether could reach its all-time high near $6,000 by July’s end.
By Bena Ilyas
Edited by Julia Sakovich
Updated
3 mins read
In a significant development for the crypto market, Ethereum (ETH) price has surged by 4.25% in the past 24 hours. This upswing comes just days after the long-awaited approval of spot Ether ETFs on May 23, raising hopes for a sustained rally.
Photo: CoinMarketCap
On May 27, early trading saw Ether hovering around the $4,000 mark, reflecting a similar price point reached during the initial ETF approval news. Impressively, ETH has gained around 26% this week, outperforming Bitcoin (BTC), which managed a more modest 2.23% increase during the same period.
Analysts are optimistic about ETH’s future. Matthew Hyland, a well-known crypto analyst, highlighted a “confirmed bullish divergence and a break of the downtrend with increased volume” on May 27, suggesting a potential breakout for Ethereum.
Ethereum significant price movement has sparked a wave of optimistic forecasts from industry experts. DeFiance Capital founder Arthur Cheong took to social media on May 26, expressing his belief that ETH could reach $4,500 even before the official launch of spot ETFs.
4.5k before spot ETF go live for trading imo.
— Arthur (@Arthur_0x) May 26, 2024
Cheong’s confidence is echoed by Ethereum educator Anthony Sassano, who predicts that MicroStrategy founder Michael Saylor, a prominent Bitcoin bull, could enter the Ethereum market within the next year. This potential investment from a major player could further fuel the ETH rally.
Historical precedent offers a glimpse into what might be on the horizon. The approval of spot Bitcoin ETFs in the US was followed by a staggering 70% surge in Bitcoin prices within two months. If history rhymes, a similar trajectory for Ether could propel it towards its all-time high of around $6,000 by the end of July.
The Ethereum rally extends beyond just price appreciation. Decentralized Finance (DeFi) is experiencing a resurgence, with the total value locked (TVL) reaching a two-year peak of $108.57 billion. Notably, 63% of this TVL resides on the Ethereum network, highlighting its continued dominance in the DeFi space, according to DefiLlama.
Furthermore, Ethereum layer-2 networks, designed to address scalability issues on the mainnet, are nearing a collective all-time high, holding a TVL of approximately $47.45 billion, according to L2beat. This growth suggests increasing adoption and a thriving ecosystem surrounding Ethereum.
ETH recent surge in Ethereum price and the positive developments within its ecosystem show a promising future for its bullish momentum. As the dust settles from the ETF approval, all eyes are on whether Ether can sustain its momentum and potentially challenge its all-time highs.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With over 3 years of crypto writing experience, Bena strives to make crypto, blockchain, Web3, and fintech accessible to all. Beyond cryptocurrencies, Bena also enjoys reading books in her spare time.
