Ethereum Jumps 5% in 24 Hours: Kicking Off Post-ETF Approval Rally?

Ether (ETH) has approached the significant $4,000 mark, trading at $3,924 in the early hours of May 27. The cryptocurrency surged 5% over the past 24 hours, sparking optimism for a potential rally following the approval of Ether ETFs.

Data from Cointelegraph shows ETH reaching an intra-day high of $3,930, reflecting a nearly 5% gain. This recent surge follows the approval of spot Ether ETFs on May 23, pushing the asset’s weekly gains to 27.5%. In comparison, Bitcoin (BTC) has seen a modest 3.8% rise during the same period.

Analyst Matthew Hyland highlighted on May 27 that ETH confirmed a bullish divergence and broke out of its downtrend with increased trading volume. His analysis, shared with his 143,000 followers on X (formerly Twitter), supports the view of a validated breakout.

This significant weekly movement has led to a flurry of predictions from industry analysts. On May 26, DeFiance Capital founder Arthur Cheong forecasted that ETH could reach $4,500 even before the official launch of the spot ETFs. In a poll conducted on May 25, Cheong found that nearly half of his 5,800 respondents had allocated between zero and 25% of their portfolios to ETH. He noted the underallocation to ETH within the crypto community.

Ethereum educator Anthony Sassano also weighed in, predicting that MicroStrategy founder Michael Saylor might invest in ETH within the next six to twelve months.

Reflecting on historical trends, Bitcoin saw a 70% increase to an all-time high following the approval of spot BTC ETFs in the U.S. If Ethereum follows a similar trajectory, its price could hit approximately $6,000 by late July.

The recent price movement of Ether has also impacted the broader crypto ecosystem. Decentralized finance (DeFi) total value locked (TVL) has reached its highest level in two years, standing at $117 billion, with 60% of that value locked on the Ethereum network, according to DefiLlama. Additionally, Ethereum’s layer-2 networks are nearing a collective all-time high in TVL, around $47 billion, as reported by L2beat.

This surge in Ethereum’s price and its effects on the DeFi landscape highlight the growing influence of the cryptocurrency and the potential for continued upward momentum.

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