Altcoins
Ethereum Climbs to $3,900, Altcoins Rally After ETF Approval
The U.S. Securities and Exchange Commission’s (SEC) preliminary approval for several Ethereum spot exchange-traded funds (ETFs) has sparked renewed enthusiasm in the crypto 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 demonstrates strong investor confidence and optimism about the future of Ethereum-based assets.
DeFi ecosystem benefits from Ethereum market dynamics
Ethereum price surged to $3,910, closing in on the critical $4,000 mark. This represents an increase of 3.5% over the last 24 hours. Crypto analyst Gert van Lagen sees a bullish outlook for Ethereum long-term price trajectory.
“ETH [1-week chart] also showing a strong hidden bullish divergence! As price reaches higher highs, the momentum indicator (ROI) makes the lowest lows”, Van Lagen explain.
Additionally, altcoins on the Ethereum network showed impressive growth, with PEPE increasing by 13.5% and ENS up 9.4%. They are now trading at $0.00001679 and $26.05 respectively.
Ethereum decentralized finance (Challenge) the ecosystem has also experienced a sharp increase. DefiLlama Data Shows Total Value Locked (TVL) in Ethereum Challenge stood at $66.61 billion as of May 27, marking its highest TVL since mid-May 2022.
Learn more: What are the best Altcoins to invest in May 2024?
Ethereum TVL. Source: ChallengeLlama
Despite the renewed interest, the market has not yet 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 a new season, the market needs 75% altcoins to outperform Bitcoin.
Learn more: What is Altcoin Season? A complete guide
In addition to optimism over the ETF approval, Ethereum developers have announced the next upgrade of “Pectra” for the first quarter of 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 the EVM code with an opt-in container system, marking a significant step forward in the development of Ethereum.
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