Ethereum: The approval of spot ETH ETFs has instilled confidence among traders that Ethereum’s price is set to soar above $4,000.
On May 27, Ethereum’s price surged closer to $4,000, with a 3.5% gain for the day. Data from Cointelegraph Markets Pro and TradingView highlighted Ether’s strong performance, rising from a low of $3,048 on May 20 to a 10-week high of $3,964 on May 27—a remarkable 27% increase.
This upward trend over the past week has been largely driven by market anticipation surrounding the approval of spot Ethereum exchange-traded funds (ETFs) in the United States. Despite an initially muted reaction post-approval, the push toward $4,000 is considered significant.
Crypto analyst Jelle noted that Ether has concluded a prolonged accumulation phase and is now poised for a substantial price increase following the ETF approvals. “It took much longer than anticipated, but we’re finally seeing a bull-market Ethereum again,” Jelle stated in a May 27 post on X.
Michaël van de Poppe, analyst and founder of MN Capital, echoed these sentiments using a weekly ETH/BTC chart. He observed that the weekly relative strength index (RSI) had shown a bullish divergence, indicating a capital rotation from Bitcoin to altcoins after a prolonged crypto winter.
Crypto trader Matthew Hyland declared in a May 27 post on X that #ETH has confirmed a bullish divergence and broken the downtrend, adding that an increase in trading volume would ‘further validate the breakout.’
However, analyst Tuur Demeester believes the full market euphoria for Ethereum has yet to manifest. In a May 25 post on X, Demeester emphasized that the ETH/BTC pair “needs to breach 0.06 to turn bullish.” At the time of publication, the ETH/BTC pair was trading at 0.056, with the 50-week simple moving average (SMA) providing immediate support.
For ETH/BTC to flip the long-term descending trendline (blue) into support, it must hold this level. Success here would see ETH/BTC rise to confront resistance at the 0.06 level, marked by the 200-week SMA. However, breaking this level does not ensure the pair is in the clear; it would still need to flip the 100-week SMA at 0.063 to confirm the breakout.
Meanwhile, data from on-chain metrics provider CryptoQuant shows that the ETH balance on exchanges has been decreasing over the last 12 months, reaching a six-year low of 13.58 million ETH on May 20. This decreasing balance indicates traders are adopting long-term investment strategies, reflecting increased confidence in the long-term potential and value of Ether.
