Ether (ETH) approached the $4,000 mark during early trading on May 27, experiencing a 5% uptick over the previous 24 hours. This surge follows the recent authorization of spot Ether ETFs on May 23, which initially propelled ETH to a similar peak.

Matthew Hyland, an analyst, shared with his 143,000 followers on X (formerly Twitter) on May 27 about ETH's confirmed bullish divergence and break from the downtrend, supported by increased trading volume. This development has further buoyed optimism among market participants. Hyland's observations align with a broader positive sentiment in the market, prompting a flurry of predictions from industry experts.

Arthur Cheong, the founder of DeFiance Capital, forecasted in a post on May 26 that ETH could potentially reach $4,500 even before the spot ETFs are launched. Cheong's X poll on May 25 revealed that nearly half of the 5,800 respondents had allocated zero to 25% to ETH, prompting him to note the underallocation to ETH among crypto enthusiasts. Ethereum educator Anthony Sassano also speculated that MicroStrategy founder Michael Saylor might acquire ETH within the next six to twelve months.

Historical data indicates that Bitcoin prices surged over 70% to an all-time high within two months following the approval of spot BTC ETFs in the United States. If ETH follows a similar trajectory, it could potentially achieve an all-time high of around $6,000 by the end of July.

Ether's notable price movement has had significant ramifications on the broader crypto ecosystem. Decentralized finance (DeFi) total value locked (TVL) has soared to a two-year high of $117 billion, with 60% of this value locked on the Ethereum network, as reported by DefiLlama. Additionally, Ethereum layer-2 networks are nearing a collective all-time high in TVL, approaching $47 billion according to L2beat.

The bullish momentum of Ether and the optimistic forecasts by industry analysts underscore the increasing confidence in its future performance, potentially driving significant gains in the coming months.