Ether (ETH) nearly reached $4,000 early on May 27, a 5% increase in the past 24 hours, following the approval of spot Ether ETFs on May 23. This news initially boosted ETH to a similar high.

Bullish Divergence and Market Reaction

On May 27, analyst Matthew Hyland informed his 143,000 followers on X (formerly Twitter) about ETH’s confirmed bullish divergence and break from the downtrend, supported by higher trading volume. This has increased optimism among traders, with Hyland’s views reflecting the market's positive sentiment and sparking predictions from industry experts.

Industry Predictions and Market Dynamics

DeFiance Capital founder Arthur Cheong predicted on May 26 that ETH might reach $4,500 even before the spot ETFs launch. A May 25 poll by Cheong showed that nearly half of 5,800 respondents had an ETH allocation between zero and 25%, indicating an underallocation. Ethereum educator Anthony Sassano speculated that MicroStrategy founder Michael Saylor could purchase ETH within the next six to twelve months.

Comparisons to Bitcoin ETF Impact

Historical data indicates that Bitcoin prices soared over 70% to an all-time high within two months after the approval of spot BTC ETFs in the U.S. If ETH follows a similar path, it could potentially hit around $6,000 by the end of July.

Ripple Effects on the Crypto Ecosystem

Ether's price surge has significantly impacted the broader crypto ecosystem. The total value locked (TVL) in decentralized finance (DeFi) reached a two-year high of $117 billion, with 60% locked on the Ethereum network, according to DefiLlama. Additionally, Ethereum layer-2 networks are nearing a collective all-time high in TVL, approaching $47 billion as reported by L2beat.

Ether’s upward momentum and optimistic predictions from analysts highlight growing confidence in its future, potentially leading to substantial gains in the coming months.