Ethereum price rallies to $4K after spot ETH ETF approved in ‘bull market’
Traders continued to push the price of Ether (ETH) to $4,000 on May 27, with the altcoin posting a 3.5% gain for the day.
Data from Cointelegraph Markets Pro and TradingView show a strong performance from Ether, which rose 27% from a low of $3,048 on May 20 to reach a 10-week high of $3,964 on May 27.
Ether's performance over the past seven days has largely been driven by market speculation that the U.S.-based Ethereum exchange-traded funds (ETFs) will be approved. Although ETH has underperformed since the approval, the move towards $4,000 is considered a big one.
Crypto analyst Jelle Ether has said that Ether has ended its long rally and that the price is ready to enter the “stratosphere” with Ethereum ETF's approval rating.
Although it “took longer than expected,” market participants are “finally seeing a bull market for ethereum again,” Jelle said in a May 27 post on X.
MN Capital analyst and founder Michael Van de Pop made a similar observation using the weekly ETH/BTC chart. According to Van de Pop, the weekly Relative Strength Index (RSI) has diverged sharply, indicating that capital has begun to shift from Bitcoin (BTC) to altcoins after an extended crypto winter.
“The 2.5-year bear market is likely to be over for Ethereum.”
“#ETH confirms the bullish divergence and the breakout,” crypto trader Matthew Hyland said in a May 27 post on X. The increase in trading volume “further confirms its formation.”
Collaborative analyst Tur Demeester believes that the Ethereum market euphoria is yet to materialize. In a May 25 post on X, Demister shared the following chart: The ETH/BTC pair “needs to breach 0.06 to become bullish.”
It is worth noting 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 a long-term downtrend (blue) flipping to support. If this happens, ETH/BTC will rise from the 200-week SMA to meet resistance at the 0.06 level.
The chart below shows that breaking this level doesn't mean the pair is out of the woods yet. It still needs to break the 100-week SMA at 0.063 to confirm a breakout.
Meanwhile, data from on-chain metrics provider CryptoQuant shows that ETH balances are declining at a six-year low of 13.58 million ETH on exchanges on May 20.
The decrease in Ether balances on exchanges indicates that traders are adopting long-term investment strategies, increasing confidence in Ether's long-term potential and value.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
