Where is ETH headed after ETF approvals?

TL;DR

• The approval of eth ETFs by the SEC has increased volatility, with analysts predicting potential rallies and significant future growth.
• Positive on-chain metrics such as rising TVL and negative net exchange flow indicate a possible bull run for ethereum.

eth's next possible step

ethereum made headlines last week after the US Securities and Exchange Commission (SEC) officially announced green light the launch of eth ETFs in the world's largest economy. The approval occurred on May 24, and somewhat as expectedcaused greater volatility of the asset.

Its price passed through severe ups and downs in the $3,650 to $3,950 range before settling to its current level of around $3,800 (according to data from CoinGecko).

User x Jelle x.com/CryptoJelleNL/status/1796444861203415181″ target=”_blank” rel=”noopener” data-wpel-link=”external”>argument that eth is consolidating above “the key support area” of about $3,750, expecting “the market to move around this area for a while, at least until Monday.” The analyst advised investors not to “fall into the boredom trap,” predicting a rally above the $4,500 mark in the coming months.

Yoddha and Satoshi Flipper were also optimistic. first x.com/CryptoYoddha/status/1796189991720157318″ target=”_blank” rel=”noopener” data-wpel-link=”external”>reclaimed that the eth bull cycle is about to begin and could drive a price explosion as high as $20,000.

satoshi fin x.com/SatoshiFlipper/status/1796502427610575081″ target=”_blank” rel=”noopener” data-wpel-link=”external”>imagined a bright future for ethereum based on the assumption that the world's leading banks and financial institutions willpower enter its ecosystem after the SEC gave approval to the aforementioned ETFs.

Recall that one of the largest banks in Singapore, DBS Bank, was recently revealed like a crypto whale, with 173,753 eth. Currently, the stash is valued to almost 670 million dollars.

A closer look at on-chain metrics

The price of eth has skyrocketed substantially in the past year, marking a jump of over 100%. The positive trend coincides with the increase in essential metrics surrounding the ecosystem.

According to DefiLlama, the total value locked on ethereum has ethereum?volume=true” target=”_blank” rel=”noopener” data-wpel-link=”external”>resurrected impressively since October 2023 and currently amounts to almost $65 billion. TVL is a key indicator that refers to the total value of assets that are currently being staked, lent, borrowed or otherwise used within decentralized finance (DeFi) protocols on the ethereum blockchain.

Its rise suggests that more capital is flowing into the ecosystem, which, in turn, could reflect positive market sentiment.

Another bullish metric is the ethereum exchange. network flowwhich has been predominantly negative over the last seven days. Some may consider he eth/chart/exchange-flows/exchange-netflow-total?exchange=all_exchange&window=DAY&sma=0&ema=0&priceScale=log&metricScale=linear&chartStyle=column” target=”_blank” rel=”noopener” data-wpel-link=”external”>change from centralized platforms to self-custody methods as It is bullish for eth valuation as it reduces immediate selling pressure.

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