Ether Price Nears $4,000 Mark Amid Bullish Sentiment
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Bullish Divergence and Market Reaction
On May 27, analyst Matthew Hyland informed his 143,000 followers on X (formerly Twitter) about ETH’s confirmed bullish divergence and break of the downtrend, supported by increased volume. This development has further fueled optimism among market participants. Hyland’s insights align with a broader positive sentiment in the market, triggering a wave of predictions from industry experts.
Industry Predictions and Market Dynamics
DeFiance Capital founder Arthur Cheong, in a May 26 post, projected that ETH could reach $4,500 even before the spot ETFs are launched. Cheong’s X poll on May 25 highlighted that nearly half of the 5,800 respondents had an ETH allocation between zero and 25%, prompting him to note the underallocation to ETH among crypto enthusiasts. Ethereum educator Anthony Sassano also speculated that MicroStrategy founder Michael Saylor might acquire ETH within the next six to twelve months.
Comparisons to Bitcoin ETF Impact
Historical data shows that Bitcoin prices surged over 70% to an all-time high within two months following the approval of spot BTC ETFs in the United States. If ETH follows a similar trajectory, it could potentially reach an all-time high of around $6,000 by the end of July.
Ripple Effects on the Crypto Ecosystem
Ether’s significant price movement has had notable effects on the broader crypto ecosystem. Decentralized finance (DeFi) total value locked (TVL) has surged to a two-year high of $117 billion, with 60% of this value locked on the Ethereum network, as reported by DefiLlama. Additionally, Ethereum layer-2 networks are approaching a collective all-time high in TVL, nearing $47 billion according to L2beat.
Ether’s bullish momentum and the optimistic forecasts by industry analysts underscore the growing confidence in its future performance, potentially driving significant gains in the coming months.