By
Mayowa Adebajo
June 17th, 2024
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.
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.
ETH Could Hit $4,500 Soon
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.
Ethereum’s DeFi Dominance Continues
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.