Ethereum Nears $4,000 Level Amid ETF Hype
27 May, 2024 ● Coin news
During early trading on May 27, Ether's price approached $4,000, increasing by 5% over the previous 24 hours, sparking speculation about the onset of a significant rally following the approval of spot Ether ETFs.
Ether achieved a nearly 5% rise, reaching an intra-day peak of $3,930, as reported by Cointelegraph.
This surge coincided with similar price levels seen shortly after the initial approval of spot Ether ETFs on May 23.
Over the past week, this momentum has contributed to Ether’s 27.5% gain, outpacing Bitcoin’s rise of 3.8% during the same period.
On that day, Matthew Hyland shared with his 143,000 followers on X that Ether has shown a bullish divergence and broken its downtrend, accompanied by increased trading volume, reinforcing the strength of this upward move.
The substantial weekly increase has triggered numerous predictions from various industry experts.
On May 26, Arthur Cheong from DeFiance Capital suggested on X that Ether could reach $4,500 even before the spot ETFs are officially launched.
Additionally, he conducted a poll on May 25, revealing that nearly half of the 5,800 participants had minimal to moderate exposure to Ether in their portfolios, leading Cheong to comment on the general underallocation to Ether within the community.
Anothny Sassano, an Ethereum educator, speculated that MicroStrategy’s Michael Saylor might start investing in Ether within the next six to twelve months.
Reflecting on Bitcoin’s history, Ether could potentially see a significant price surge similar to Bitcoin’s 70% increase following its ETF approvals, possibly reaching new highs around $6,000 by the end of July.
Ether’s robust performance has broader implications for the cryptocurrency ecosystem.
The total value locked in Decentralized Finance (DeFi) on Ethereum has reached its highest point in two years at $117 billion, according to DefiLlama, with 60% of this amount hosted on the Ethereum network.
Additionally, Ethereum’s layer-2 networks are close to reaching a collective all-time high with approximately $47 billion locked, as per data from L2beat.
Sources:
https://cointelegraph.com/news/ether-gains-5-percent-in-24-hours-post-etf-approval-pump
https://x.com/MatthewHyland_/status/1794888421338706393
https://x.com/Arthur_0x/status/1794746610175615428
https://x.com/Arthur_0x/status/1794337013392691448
https://www.tradingview.com/symbols/ETHUSD/
