Spot ETF approvals give green light for Ethereum price to enter ‘bull market’ and rally towards $4K.

Traders are continuing to drive the price of Ether (ETH) closer to $4,000 on May 27, with the altcoin experiencing a 3.5% gain for the day. According to data from Cointelegraph Markets Pro and TradingView, Ether has seen a strong performance, rising from a low of $3,048 on May 20 to a 10-week high of $3,964 on May 27.
Ether’s recent performance has been largely influenced by the market’s anticipation of the approval of spot Ethereum exchange-traded funds (ETFs) in the United States. Despite a lackluster performance after the approval, the move towards $4,000 is seen as significant. Crypto analyst Jelle believes that Ether has completed a long period of accumulation and with the approval of spot Ethereum ETFs, the price is ready to enter the “stratosphere.”
Analyst and founder of MN Capital, Michaël van de Poppe, made similar observations using a weekly ETH/BTC chart. According to van de Poppe, the weekly relative strength index (RSI) has shown a bullish divergence, indicating the start of capital rotation from Bitcoin (BTC) into altcoins after a prolonged crypto winter.
Crypto trader Matthew Hyland declared that “#ETH confirms a bullish divergence and a break of the downtrend,” adding that an increase in trading volume would further validate the breakout. Fellow analyst Tuur Demeester believes that the Ethereum market euphoria has yet to materialize, stating that the ETH/BTC pair needs to breach 0.06 to turn bullish.
It is important to note that the ETH/BTC pair was trading at 0.056 at the time of publication, with the 50-week simple moving average (SMA) providing immediate support. The price needs to hold this support to increase the chances of flipping the long-term descending trendline (blue) into support. If this happens, ETH/BTC will rise to confront resistance from the 0.06 level embraced by the 200-week SMA. However, breaching this level does not guarantee a complete breakout, as the pair will still need to flip the 100-week SMA at 0.063 to confirm the breakout.
Meanwhile, on-chain metrics provider CryptoQuant’s data shows that the ETH balance on exchanges has been decreasing over the past 12 months, reaching a six-year low of 13.58 million ETH on May 20. This decreasing balance indicates traders’ adoption of long-term investment strategies, demonstrating increased confidence in the long-term potential and value of Ether.
Please note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research before making any decisions.