Ethereum (ETH) stands poised on the cusp of a significant breakthrough, with multiple indicators hinting at an impending bull run. Following the unexpected approval of spot ETH ETFs by the SEC last week, Ethereum's price surged 27% weekly, reaching an intraday high of $3,950. At the time of writing, ETH was up 2.34% in the previous 24 hours to $3,941. Kaiko, a leading provider of cryptocurrency market data, has identified three key indicators suggesting a potential Ethereum bull run.

Firstly, the derivatives market reveals a dramatic shift in trader sentiment, with Ethereum's open interest and funding rates reaching all-time highs. Open interest has soared to $11 billion, signaling substantial capital inflows into the industry. Additionally, ETH perpetual futures funding rates have risen from their lowest point in over a year to a multi-month high.

Secondly, the ETH-to-BTC ratio, which measures the relative performance of the two assets, has increased from 0.044 to 0.055, indicating a broader market sentiment shift in favor of Ethereum. Although still below February highs, this rise suggests a growing confidence in Ethereum's prospects.

Thirdly, the ETH Cumulative Volume Delta (CVD) reveals a broad-based buying trend in both U.S. and offshore spot markets since May 21, indicating a wider global optimistic sentiment. Notably, offshore exchanges had previously been registering net selling.

Furthermore, market depth, defined as the market's ability to sustain large market orders without impacting the asset's price, is a crucial indicator. According to Kaiko, ETH's market depth on CEXes is approximately $226 million, still 42% below pre-FTX average levels, with only 40% concentrated on U.S. exchanges. This suggests that Ethereum's market is still recovering from the FTX collapse but has significant potential for growth. The approval of spot ETH ETFs has significant ramifications for Ethereum, removing regulatory uncertainty that had weighed on its performance over the past year. This development, combined with the three indicators mentioned above, suggests that Ethereum may be on the cusp of a significant bull run. As the market continues to evolve, Ethereum's price action will be closely monitored, and these indicators will be crucial in shaping its future trajectory.