According to information disclosed by Nancy Lubale, "Rising expectations that spot Ethereum ETFs will be approved in the U.S. sent the ETH price soaring more than 26% in the past two days to reach highs not seen since March 15"
One thing to note is that, "Since hitting USD 3,800 , the price of ETH has pulled back slightly, but the possibility of a spot Ethereum ETF being approved, several fundamental factors and on-chain metrics suggest that the altcoin's uptrend remains intact.
It was also mentioned that, "One factor supporting Ether's bullishness is the increase in open long positions in ETH in the futures market. Data from market intelligence firm, CryptoQuant, shows that total open interest in Ethereum in the derivatives market increased from 2.8 million to 3.2 million ETH in a few hours on May 20, after rumors surfaced that the U.S. Securities and Exchange Commission (SEC) was changing its mind about approving Ethereum spot ETFs."
On the other hand and according to CryptoQuant analysts, "Traders in the perpetual futures market aggressively opened long positions in Ethereum, expecting higher prices following rumors that the U.S. spot Ethereum ETF could be approved in May."
On that note and "In U.S. dollar terms, ETH open interest has risen to an all-time high of USD 14.68 billion. The high open interest simply indicates that the underlying trend is strong and that investor confidence in Ethereum may continue"
SOURCES CONSULTED
Cointelegraph. 3 reasons why Etheruem price looks ready to rally higher. Link
OBSERVATION:
The cover image does not belong to the author: @lupafilotaxia, the image was taken from: Cointelegraph
