① The release of an Ethereum spot ETF is in sight, driving the recent surge in the price of Ether and is currently hitting the critical level of $4,000; ② Analysts believe that once the ETF is successfully issued, Ether will break through $4,000, but others have pointed out that the Ethereum craze will still take some time to prepare.
Financial Services Association, May 28 (Editor: Malan) Over the past seven days, the rise of Ether has undoubtedly been ahead of many assets, largely due to market optimism about US regulations approving Ethereum ETFs.
Data shows that since May 20, Ether has been rising all the way from a low of $3,078 to a 10-week high of $3,942 on Monday, reaching an astonishing 28.1% increase on the 7th. As of press time, the price of Ether has declined slightly and is “accumulating energy” above $3,870.
Whether the Ether price can break through $4,000 is seen as a critical watershed. Cryptocurrency analyst Jelle said that Ether has completed long-term accumulation, and once a spot Ethereum ETF is approved, its price will be ready to enter the stratosphere, that is, it will develop steadily in a high range.
He also noted that although it took longer than expected, market participants have finally seen an Ethereum bull run once again.
Market Watch
Michaël van de Poppe, analyst and founder of MN Capital, analyzed that the weekly Relative Strength Index showed a bullish divergence, indicating that capital is changing the racetrack. After a long crypto winter, the momentum driving Bitcoin's rise began to shift to altcoins.
Another analyst, Tuur Demeester, believes that the Ethereum market frenzy hasn't really arrived yet. He pointed out last week that the price ratio of Ether to Bitcoin would need to break through 0.06 to confirm bullishness. Up to now, the price ratio between Ether and Bitcoin has continued to fluctuate around 0.056, which has also made the market pay close attention to the next situation.
Others suggest incentives other than market factors. Cryptocurrency market maker QCP Capital said that the sharp rise in Ether may be related to remarks made by US presidential candidate Trump over the weekend, and he firmly expressed his support for cryptocurrencies.
Last weekend, Trump posted on social networking platform Truth Social, saying he is very positive and open about cryptocurrency companies and everything related to this emerging industry.
However, the QCP also emphasized that although it has an overall positive attitude towards the price of Ether, it does not believe that there will be a major breakthrough in the price of Ether until it sees the S-1 approval of the key Ethereum ETF document and is supported by more clear data. This will still take some time.
Editor/Somer