Key Points
The price of Ethereum (ETH) is nearing the $4,000 mark during the early trading hours of May 27.
This represents a 5% growth over the past day, sparking optimism that this could be the start of a post-ETF approval surge for Ethereum.
Ethereum’s value rose nearly 5% within the day, reaching an intra-day peak of $3,930.
This price level was also reached a few days prior when spot Ethereum ETFs received their initial approval on May 23.
Ethereum Outperforms Bitcoin
Over the past week, Ethereum has seen a 27.5% increase, significantly outpacing Bitcoin (BTC), which only saw a 3.8% growth during the same period.
On May 27, analyst Matthew Hyland shared with his 143,000 followers that Ethereum has confirmed a bullish divergence and a break from the downtrend, accompanied by a volume increase, further substantiating the breakout.
This impressive weekly gain has sparked numerous predictions from industry analysts and observers.
In a post on May 26, DeFiance Capital founder Arthur Cheong anticipated that Ethereum would hit $4,500 even before the launch of spot ETFs.
Cheong conducted a poll on May 25, asking his followers about their Ethereum portfolio allocation.
Almost half of the 5,800 respondents had an Ethereum allocation between zero and 25%, leading Cheong to comment on the underallocation to Ethereum.
Additionally, Ethereum educator Anothny Sassano speculated that MicroStrategy founder Michael Saylor would purchase Ethereum within the next six to twelve months.
Following the approval of spot BTC ETFs in the United States, Bitcoin prices soared over 70% to a record high within two months.
If Ethereum follows a similar trajectory, its price could potentially reach a new high of around $6,000 by the end of July.
Ethereum’s significant move has also impacted the broader crypto ecosystem.
The total value locked in Decentralized Finance (DeFi) has returned to its peak level of the past two years, standing at $117 billion, with 60% of this value being locked on the Ethereum network, as reported by DefiLlama.
Additionally, Ethereum layer-2 networks are close to a collective all-time high in total value locked, estimated at around $47 billion, as per L2beat.
