Is Ethereum's 2+ year bear market over?
The price of Ethereum (ETH) rallied to nearly $4,000 on May 27 (local time) following the approval of a spot Ethereum ETF. According to data from Trading, ETH's price rise, which began on May 20 at $3,048, reached $3,964 on May 27, representing a 27% increase. According to Cointelegraph, Ethereum's recent performance is largely attributed to the market's anticipation of the approval of a spot Ethereum ETF in the United States.
Jelle, a crypto analyst, believes that ETH has completed a prolonged period of accumulation and that the price is now ready to enter the stratosphere. Michaël van de Poppe, founder of MN Capital, analyzed the weekly chart of ETH/BTC and identified a bullish divergence in the relative strength index (RSI), which he said is a sign of capital rotation from BTC to altcoins.
According to on-chain data, Ethereum balances held on exchanges have declined over the past 12 months, reaching a six-year low of 13.58 million ETH as of May 20th. This indicates that investors are adopting a long-term investment strategy, and there is growing confidence in the long-term potential and value of Ethereum, the outlet explained.
Matt Hougan, chief investment officer at Bitwise, a crypto asset manager and issuer of a BTC spot ETF, recently added to the optimism, saying in an interview with the Bankless podcast that “the approval of a spot Ethereum ETF could send Ethereum to new all-time highs.” Hogan predicted that the influx of investors into ETH ETFs could total billions of dollars, surpassing the all-time high of around $4,900 reached in November 2021.
