After approval of the spot ETH ETF, a rally towards $4,000 in the Ethereum price in a ‘bull market’ was approved.

Traders pushed the price of Ethereum (ETH) close to $4,000 on May 27, with the altcoin up 3.5% on the day.

Ethereum’s strong performance has seen it rise from a low of $3,048 on May 20, rising 27% to reach a 10-week high of $3,964 on May 27, according to data from Cointelegraph Markets Pro and TradingView.

Ether’s performance over the past seven days has been primarily driven by market expectations that a spot Ethereum Exchange-Trade Fund (ETF) will be approved in the United States. Although ETH has performed poorly since approval, a move towards $4,000 is considered meaningful.

Crypto analyst Jelle said Ether has completed a long build-up and the price is ready to enter the “stratosphere” with the approval of a spot Ethereum ETF.

In a May 27 post on

Michaël van de Poppe, analyst and founder of MN Capital, made a similar observation using the weekly ETH/BTC chart. According to van de Poppe, the weekly Relative Strength Index (RSI) has produced a bullish divergence, signaling the beginning of a capital rotation from Bitcoin (BTC) to altcoins after a prolonged cryptocurrency winter.

“It is very likely that the 2.5-year bear market has finally ended for Ethereum.”

“#ETH confirms a breakout of the bullish differential and downtrend,” cryptocurrency trader Matthew Hyland declared in a May 27 post on added.

Fellow analyst Tuur Demeester believes that the euphoria in the Ethereum market has not yet materialized. In a post by X on May 25, Demeester shared the following chart: The ETH/BTC pair “needs to break above 0.06 to turn bullish.”

It is worth noting that at the time of publication, the ETH/BTC pair was trading at 0.056, with the 50-week simple moving average (SMA) providing immediate support.

Price needed to hold the long-term downtrend line (blue) above this support to increase the chances of turning it into support. If this happens, ETH/BTC will face resistance at the 0.06 level, which is accepted by the 200-week SMA.

The chart below shows that a breach of this level does not mean the pair is out of trouble yet. To confirm a breakout, the 100-week SMA needs to flip at 0.063.

Meanwhile, ETH balances on exchanges have been declining over the past 12 months, reaching a six-year low of 13.58 million ETH on May 20, according to data from on-chain metrics provider CryptoQuant.

Declining Ether balances on exchanges indicate that traders have adopted a long-term investment strategy, indicating increased confidence in the long-term potential and value of Ether.