Ethereum Surges 5% in 24 Hours: Post-ETF Approval Rally?

As of early trading on May 27, the price of Ether (ETH) approached the $4,000 mark, showing a 5% increase over the past 24 hours. This rise has sparked speculation that it might herald the beginning of Ether’s surge following the approval of new Exchange-Traded Funds (ETFs). Ether peaked intraday at $3,930, aligning with a similar pricing spike noticed a few days earlier on May 23, when spot Ether ETFs received approval.

The recent price action has brought Ether a monumental 27.5% gain over the last week, significantly outperforming Bitcoin (BTC), which only saw a modest increase of 3.8% during the same period. Analyst Matthew Hyland noted to his followers on social media that ETH has demonstrated a bullish divergence and broke its downtrend with a noticeable uptick in trading volume, reinforcing the idea of a lasting breakout.

This substantial upward movement has triggered a barrage of forecasts from experts and market observers. Arthur Cheong, the founder of DeFiance Capital, boldly predicted on social media that Ether could reach $4,500 even before the new ETFs become available. Cheong conducted a poll to gauge how much ETH his followers held in their portfolios. Around half of the 5,800 respondents had allocated between zero and 25% of their portfolios to ETH, causing Cheong to point out the underallocation to the asset.

Another notable prediction came from Ethereum educator Anthony Sassano, who speculated that Michael Saylor, the founder of MicroStrategy, might invest in ETH within the next six to twelve months. Historically, Bitcoin prices surged over 70% to reach all-time highs within two months following the approval of spot Bitcoin ETFs in the United States. If Ether follows a comparable trajectory, its prices might soar to an unprecedented $6,000 by the end of July.

Ether’s upward surge also influenced broader aspects of the cryptocurrency ecosystem. The total value locked in decentralized finance (DeFi) platforms has reached a two-year peak of $117 billion, with a significant 60% of this amount locked on the Ethereum network. Ethereum layer-2 solutions are also nearing their collective highest total value locked, hovering around $47 billion, as per recent data.

Market participants are keenly observing how ETH might continue to perform post-ETF approval. While recent gains are promising, the crypto world is known for its volatility, making sustained growth uncertain yet potentially lucrative.

These developments have brought renewed attention to the DeFi sector, with Ethereum taking the lion’s share of growth and locking substantial assets within its ecosystem. Ethereum’s role continues to expand, solidifying its position as a leading force in decentralized applications and financial services.

The crypto community eagerly anticipates whether these bullish predictions will materialize, driving Ether to new astronomical heights and influencing investment trends across the digital currency landscape.