Ethereum reaches $4K: Is The ETF Approval Just Kicking In?

2 weeks ago 14
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The price of Ethereum (ETH) has surged by 5% within the last 24 hours, nearing the significant $4,000 mark. This spike has sparked optimism that Ethereum could be on the brink of a significant rally following the approval of its spot ETF.

Ethereum Reaches $4,000?

Ethereum's price came close to the $4,000 psychological barrier, reaching an intra-day high of $3,950. This represents a notable 5% gain over the past day. Data reveals that ETH had similarly approached this price point shortly after the spot Ether ETFs were approved on May 23.

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Ethereum Price Analysis: Will Ethereum reach $6K by July?

Over the past week, Ethereum has experienced a 27.5% increase, vastly outperforming Bitcoin (BTC), which has only seen a 3.8% rise in the same period. Analysts highlighted a confirmed bullish divergence and an uptrend break with rising volume, which supports the breakout.

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The significant weekly surge in Ethereum's price has led to various predictions from industry experts. Experts forecasted that Ethereum could even reach $4,500 before the spot ETFs even launch. They also noted that nearly half of the survey respondents had allocated between 0% and 25% of their portfolios to ETH, indicating a potential underallocation in the market.

Even Ethereum educators predicted that MicroStrategy founder Michael Saylor might invest in ETH within the next six to twelve months. Historical data suggests that if Ether follows Bitcoin's trajectory post-ETF approval, it could achieve an all-time high of around $6,000 by late July.

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Market Overview for Q2 of 2024

Ethereum's recent price movement has had a significant impact on the broader cryptocurrency ecosystem. The total value locked in decentralized finance (DeFi) has soared to a two-year high of $117 billion, with Ethereum accounting for 60% of this value. Additionally, Ethereum layer-2 networks are nearing a collective all-time high in total value locked, reaching approximately $47 billion, as reported by L2beat.
 

Ethereum's impressive 5% gain within a day and its approach to the $4,000 mark suggest a potential post-ETF approval rally. With strong bullish signals and industry optimism, ETH might continue to surge, potentially reaching new all-time highs. The highly expected surge will bring along other cryptos, especially following the past week's major news: the approval of FIT21 (the new standalone legislation), the ETFs approvals, the crypto Visa Card launch by Eher.fi, the launch of new trust funds and lastly, the Trump public support of cryptos, spreading nothing but positive market sentiment across investors and traders, one of the main key factors to affect the crypto market volatility.

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