On Monday, Ethereum's price surged to $3,900, driven by a wave of bullish sentiment among investors, with expectations high for its continued ascent towards $4,000 and beyond.

Ethereum (ETH) is poised to surpass the $4,000 mark, even before the launch of spot Ethereum exchange-traded funds (ETFs). DeFiance Capital founder Arthur Cheong highlighted that the market appears to be significantly "underallocated" in ETH, which could fuel further price increases. In a social media post on X dated May 26, Cheong predicted that Ethereum could reach $4,500 ahead of the ETF trading launch, citing a poll where nearly 50% of respondents reported allocating only up to 25% of their portfolios to Ethereum. This suggests that many investors may be underestimating Ethereum's growth potential.

The U.S. Securities and Exchange Commission (SEC) approved multiple spot Ethereum ETFs on May 23, following a series of delays. This regulatory milestone has heightened investor expectations that traditional market participants will inject new capital into Ethereum, similar to the surge observed with spot Bitcoin ETFs, which helped BTC achieve a new all-time high of $73,750 in March.

However, despite this approval, ETF issuers still require the SEC's approval for their registration statements, which detail necessary investor disclosures. Unlike exchange filings, there is no set timeline for the SEC to approve these statements, creating uncertainty around the exact launch date for trading.

A Reuters source familiar with the matter suggested that the trading approval process could take days or weeks, without providing specific details. Former SEC Chairman Jay Clayton, in an interview with CNBC, reinforced the sentiment that the start of spot ETH ETF trading is a matter of "when, rather than if," describing it as "inevitable" while acknowledging that some unresolved issues remain.

As of press time, Ethereum is trading at $3,910, according to data from CoinGecko. This price movement indicates strong investor confidence and anticipation of significant capital inflows following the eventual launch of the ETFs.

The current market dynamics reflect a mix of optimism and caution. While the approval of spot ETH ETFs is a significant positive catalyst, the lingering uncertainty regarding the exact timing of their trading launch continues to influence market sentiment. As investors navigate this period, the focus remains on the potential for Ethereum to break new price barriers and solidify its position as a leading cryptocurrency in the evolving digital asset landscape.