- Ethereum price nears $4,000, boosted by optimism surrounding newly approved ETFs.
- Market analysts suggest that Ethereum has the potential to reach $10,000 in the current cycle.
After the US Securities and Exchange Commission (SEC) approved applications for Ethereum [ETH]Exchange Traded Funds (ETFs), the king of altcoins, showed a sharp rise.
Starting the week strong, Ethereum saw a 3.7% gain in the last 24 hours, pushing its price towards the significant $4,000 mark, a significant increase from recent weeks.
At press time, Ethereum was trading at $3,899, a significant rebound from earlier swings.
Ethereum faces a potential target of $4,500
Amid this price movement from Ethereum, Arthur Cheong, CEO of DeFiance Capital, suggested that Ethereum could hit $4,500 before its spot ETFs start trading, potentially in July or August.
Cheong drew parallels with the crypto boom of 2017, suggesting that the introduction of spot Ethereum ETFs could attract a significant base of retail investors.
This is very similar to his Bitcoin [BTC] counterparts that have more than 70% of positions held by retail investors.
The excitement surrounding Ethereum’s future performance is palpable among investors and market watchers.
However, it is crucial to note that these projections remain speculative, with the actual trajectory of the market dependent on many factors, including broader economic conditions and investor sentiment.
Additionally, the current SEC regulatory environment shows green light only for initial 19b-4 requests for the Ethereum ETF, with the basic S-1 forms still pending approval.
Ethereum Bullish Trends
Despite these regulatory hurdles, the dynamics of the Ethereum market is showing strong growth, not only in price, but also in basic on-chain metrics.
Data by Santiment highlighted the spike in Ethereum price volatility, a metric that has risen significantly from a fortnight’s low to today’s remarkable high.
Source: Santiment
Notably, as the price volatility of a cryptocurrency increases along with its price, it indicates a period of increased trading activity and interest, often fueled by speculative purchases.
Glassnode contributes to the growing interest reported an increase in the number of new Ethereum addresses, indicating an expanding network of users.
Such an increase usually means increased market participation, potentially supported by positive market sentiment and wider adoption.
Source: Glassnode
Additionally, Coinglass’ data revealed a spike in Ethereum open interest, underscoring an active derivatives market with increased trading volumes.
This not only pointed to increased liquidity, but also a growing interest in speculation where traders anticipate upcoming price movements.
Source: Coinglass
However, an increase in open interest also implies greater market leverage, which could amplify both gains and losses depending on market directions.
A technical analysis of Ethereum’s daily chart revealed that the cryptocurrency recently breached the $3,700 resistance level and flipped it into support, targeting another major milestone at $4,000.
This breakout indicates that bullish momentum is strong, which may lead to further gains.
Source: TradingView
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At the same time, AMBCrypto with a link to data from Glassnode, reported a a significant decrease in Ethereum’s Network Value to Transaction (NVT) ratio.
A decrease in this ratio indicates that the asset is currently undervalued, which may indicate an impending rise in its market price.