Ethereum (ETH) gains 5% in 24 hours: Start of post-ETF approval pump?

ETH has moved within $70 of the psychological $4,000 price threshold during early trade on May 27. The price of Ether ETH is $3,911 and is approaching $4,000 during early trade on May 27, up 5% in the last 24 hours, raising hopes that this is the start of Ether’s post-ETF acceptance pump. 

According to Cointelegraph, the asset rose about 5% on the day, reaching an intra-day high of $3,930.  ETH reached a similar price just days before when spot Ether ETFs were initially permitted on May 23. This has resulted in a 27.5% increase for ETH over the previous week, outperforming Bitcoin (BTC), which has gained only 3.8% in the same span. On May 27, analyst Matthew Hyland informed his 143,000 X followers that ETH had verified a bullish divergence and a break of the downtrend with a surge in volume, confirming the breakout.

The significant weekly rise has prompted a slew of forecasts from industry analysts and outsiders. In a May 26 article on X, DeFiance Capital founder Arthur Cheong forecasted that ETH would hit $4,500 before spot ETFs were available. On May 25, he polled his followers on X to see how much ETH they had allocated to their portfolio. Almost half of the 5,800 respondents had zero to 25% allocation, prompting Cheong to observe: “Just look at how much CT is under-allocated to ETH,”

Meanwhile, Ethereum’s Anthony Sassano projected that MicroStrategy inventor Michael Saylor would purchase ETH within the next six to twelve months. Bitcoin prices rose by more than 70% to an all-time high in the two months following the approval of spot BTC ETFs in the United States.

If Ether follows BTC’s lead, prices might reach an all-time high of about $6,000 by the end of July. Ether’s significant shift has had a broader impact on the cryptocurrency industry. According to DefiLlama, the total value locked in decentralized finance (DeFi) has returned to its two-year peak of $117 billion, with 60% of it closed on the Ethereum network. Meanwhile, Ethereum layer-2 networks are approaching a collective all-time high in total value, which is locked at about $47.

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