Ethereum in May 2024: Will ETF Approvals Boost ETH Price?
In this report, we explore and analyze Ethereum’s ecosystem surge and the ETH price action in May 2024.
Key takeaways:
Founded in 2013 by Vitalik Buterin, Ethereum serves as a distributed blockchain computing platform designed for the execution of smart contracts and decentralized applications (dApps). The network enables users to create and innovate extensively with smart contracts, catalyzing the emergence of various assets and industries such as decentralized finance (DeFi), non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), Web3, and beyond. At its core, Ethereum features an execution engine tailored for smart contract processing, known as the Ethereum Virtual Machine (EVM). In addition, Ethereum employs a proof-of-stake (PoS) consensus mechanism, which enhances its scalability and sustainability.
Throughout May, Ethereum’s (ETH) price remained volatile, reflecting a combination of market optimism and underlying challenges. ETH began the month trading below $3,000. Despite several rallies, ETH struggled to sustain significant gains above this level through the middle of the month.
The approval and anticipation of spot Ethereum exchange-traded funds (ETFs) was key in driving market sentiment. On May 17, ETH began to rise above the $3,000 mark and nearly reached $4,000 on May 23, driven by investor optimism about the potential influx of institutional investment via these ETFs. The approval of the ETFs by the United States Securities and Exchange Commission (SEC) brought renewed hope for a bullish market, causing ETH to surge approximately 27% at one point.
However, despite these gains, ETH’s price faced resistance, and it was unable to sustain levels above $3,900 for a prolonged period. The
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