Altcoins
Ethereum soars to $3,900, Altcoins rally after ETF approval
Preliminary approval by the US Securities and Exchange Commission (SEC) for several Ethereum spot exchange-traded funds (ETFs) has sparked renewed excitement in the cryptocurrency market.
This development has led to significant gains for Ethereum (ETH) and several altcoins within its ecosystem, such as PEPE and Ethereum Name Service (ENS), in the last 24 hours. This signals strong investor confidence and optimism regarding the future of Ethereum-based assets.
The DeFi ecosystem benefits from Ethereum’s market momentum
The price of Ethereum rose to $3,910, getting ever closer to the critical threshold of $4,000. This represents an increase of 3.5% in the last 24 hours. Crypto analyst Gert van Lagen sees it a bullish outlook for Ethereum long-term price trajectory.
“ETH [1-week chart] also showing a strong hidden bullish divergence! As the price reaches higher highs, the momentum indicator (CSR) brings down the lows,” Van Lagen explained.
Additionally, altcoins in the Ethereum network have shown impressive growth, with PEPE up 13.5% and ENS up 9.4%. They are now trading at $0.00001679 and $26.05 respectively.
Ethereum’s decentralized finance (DeFi) the ecosystem has they also recorded a surge. Data from DefiLlama shows that the total value locked (TVL) in Ethereum DeFi stands at $66.61 billion as of May 27, marking the highest TVL since mid-May 2022.
To know more: What are the best Altcoins to invest in in May 2024?
EthereumTVL. Source: DefilLama
Despite the renewed interest, the market has not yet done so entered an altcoin season (altseason). According to the Altcoin Season Index, only 35% of the top 50 altcoins have outperformed Bitcoin over the past 90 days. To enter an altseason, the market needs 75% of altcoins to outperform Bitcoin.
To know more: What is Altcoin Season? A complete guide
In addition to the optimism that came with the ETF’s approval, Ethereum developers did announced the upcoming “Pectra” update. for Q1 2025. This update will introduce the Ethereum Virtual Machine (EVM) Object Format (EOF), which includes approximately 11 Ethereum Improvement Proposals (EIPs). EOF aims to improve EVM code with an opt-in container system, marking a significant advancement in the development of Ethereum.
Disclaimer
All the information on our website is published in good faith and for general information purposes only. Any action you take on information found on our website is strictly at your own risk.