- Ethereum’s price is approaching $4,000, driven by optimism surrounding newly approved ETFs.
- Market analysts suggest that the potential for Ethereum could reach as high as $10,000 in the current cycle.
In the wake of the US Securities and Exchange Commission (SEC) approving applications for Ethereum [ETH]-based Exchange Traded Funds (ETFs), the king of the altcoins, have seen a powerful rebound.
Ethereum started the week well, posting a 3.7% gain over the past 24 hours, pushing its price close to the significant $4,000 mark, a significant increase from recent weeks.
At the time of writing, Ethereum was trading at $3,899, marking a significant recovery from previous swings.
Ethereum is facing a potential target of $4,500
Amid this Ethereum price movement, Arthur Cheong, CEO of DeFiance Capital, suggested that Ethereum could reach $4,500 before trading in its spot ETFs begins, possibly in July or August.
Cheong drew parallels to the 2017 crypto boom, indicating that the introduction of spot Ethereum ETFs could attract a significant base of retail investors.
This is a lot like Bitcoin [BTC] counterparts, where more than 70% of positions are held by retail investors.
The excitement surrounding Ethereum’s future performance is palpable among investors and market watchers.
However, it is critical to note that these projections remain speculative, with the actual market trajectory dependent on numerous factors, including broader economic conditions and investor sentiment.
Plus, there’s the SEC’s current regulatory landscape only shows green light for the initial 19b-4 requests for Ethereum ETFs, with essential S-1 forms still pending approval.
Ethereum’s bullish trends
Despite these regulatory hurdles, Ethereum’s market dynamics have shown robust growth not only in price, but also in fundamental on-chain metrics.
Facts van Santiment highlighted a rise in Ethereum price volatility, a measure that has risen significantly from lows in the past two weeks to a notable peak today.
Source: Santiment
Particularly as the cryptocurrency’s price volatility increases along with its price, it signals a period of increased trading activity and interest, often driven by speculative buying.
Adding to the growing interest, Glassnode reported an increase in the number of new Ethereum addresses, indicating a growing network of users.
Such an increase typically means greater market participation, possibly supported by positive market sentiment and broader acceptance.
Source: Glassnode
Moreover, Coinglass’ facts revealed a spike in Ethereum open interest, underscoring an active derivatives market with increased trading volumes.
This indicated not only increased liquidity, but also increasing speculative interest as traders anticipated upcoming price movements.
Source: Coinglass
Nevertheless, an increase in Open Interest also implies greater market forces, which could amplify both gains and losses depending on market directions.
Technical analysis of Ethereum’s daily chart revealed that the cryptocurrency recently breached the $3,700 resistance level, turning toward support and setting its sights on the next major milestone at $4,000.
This breakout suggests that bullish momentum is strong, potentially leading to further gains.
Source: TradingView
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At the same time, citing data from Glassnode, AMBCrypto says, reported one 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 increase in its market price.