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Ethereum Surges After ETF Approval: Will It Reach $4,500 Before Official Launch?

Ethereum Surges After ETF Approval: Will It Reach $4,500 Before Official Launch?

TL;DR

  • The approval of Ether ETFs has driven a 4.25% increase in the price of Ethereum.
  • Analysts predict that Ethereum could reach $4,500 before the official activation of the ETFs.
  • Ethereum continues to dominate the DeFi space with a TVL of $108.57 billion.

In a significant development for the cryptocurrency market, Ethereum (ETH) has seen a notable 2.2% increase in the last 24 hours, according to data from CoinMarketCap.

This surge came just days after the long-awaited approval of Ether ETFs on May 23, raising expectations of a sustained rally.

During the early hours of May 27, Ether was trading around $4,000, reflecting a price similar to that reached during the initial news of the ETF’s approval.

This performance is even more impressive considering that ETH has gained approximately 26% this week, outperforming Bitcoin (BTC), which only managed a 2% increase in the same period.

Analysts show considerable optimism about the future of Ethereum.

Matthew Hyland, a renowned cryptocurrency analyst, highlighted on May 27 a “confirmed bullish divergence and downtrend breakout with increased volume,” suggesting a possible breakout for Ethereum.

This sentiment is shared by Arthur Cheong, founder of DeFiance Capital, who on social media expressed his belief that ETH could reach $4,500 even before the official launch of the ETFs.

Trust in Ethereum is also supported by influential market personalities.

Ethereum educator Anthony Sassano predicted that Michael Saylor, founder of MicroStrategy and a prominent Bitcoin advocate, could enter the Ethereum market within the next year.

Such an investment from a major player could fuel the ETH rally further.

A look at historical precedent provides a glimpse of what could be on the horizon.

The approval of Bitcoin ETFs in the United States was followed by an impressive 70% rise in Bitcoin prices in two months.

If history repeats itself, a similar trajectory for Ether could see it hit its all-time high of around $6,000 by the end of July.

Ethereum Soars After ETF Approval: Will It Reach $4,500 Before Its Official Launch?

Ethereum Dominance in DeFi Continues

Ethereum’s rally is not limited to just price appreciation.

The Decentralized Finance (DeFi) sector is experiencing a resurgence, with 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 data from DefiLlama.

Additionally, Ethereum’s layer 2 networks, designed to address scalability issues on the mainnet, are approaching a collective all-time high, maintaining a TVL of approximately $47.45 billion, according to L2beat.

This growth suggests growing adoption and a thriving ecosystem around Ethereum.

The recent rise in Ethereum price and positive developments within its ecosystem show a promising future for its bullish momentum.

With ETF approval already underway, all eyes are on whether Ether can maintain its momentum and challenge its all-time highs.

The crypto community watches with anticipation, assessing how these dynamics will influence the future of the cryptocurrency market.

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