ETH Alert: 3 Crucial Factors Every Ethereum (ETH) Investor Must Watch Now!

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  <li>The anticipation of Spot Ethereum ETFs being approved in the US has led to a significant surge in ETH prices, rising over 26% in the past two days to levels not seen since March 15.</li>
  <li>Despite a slight pullback from the $3,800 mark, the potential approval of Ethereum ETFs, along with fundamental factors and on-chain metrics, suggests that the bullish trend for altcoins remains intact.</li>
  <li>CryptoQuant analysts noted, "Traders in the futures market have aggressively opened long positions in Ethereum, expecting higher prices following rumors that the spot Ethereum ETF could be approved in May."</li>
</ul>
<p><strong>Discover the latest developments in Ethereum's market dynamics as anticipation for US ETF approval drives significant price movements and investor confidence.</strong></p>
<h2><strong>Increasing Open Positions Support ETH's Bullish Trend</strong></h2>
<p>One of the factors supporting Ether's rise is the increase in open long ETH positions in the futures market. Data from on-chain platform CryptoQuant shows that the total open interest in Ethereum's derivatives market has risen from 2.8 million ETH to 3.2 million ETH following a potential U-turn by the US Securities and Exchange Commission (SEC).</p>
<p>Currently, ETH open positions in USD terms have reached a record high of $14.68 billion. High open interest simply indicates that the underlying trend is strong and that investor confidence in Ethereum continues.</p>
<h3><strong>Ethereum Begins to Outperform Bitcoin</strong></h3>
<p>This week, the potential approval of a spot Ethereum ETF has sparked discussions among analysts about its possible impact on Ethereum's price. According to CryptoQuant analysts, there are now more buy orders for ETH in the perpetual futures market compared to other order types. The following chart shows that the buyer-to-buy ratio is above one, indicating that buy orders in the perpetual futures market are now larger than sell orders.</p>
<p>Additional data from CryptoQuant reveals that investors are now shifting more towards Ethereum than Bitcoin. Similarly, data from TradingView shows that the ETH/BTC trading pair rose from $0.04572 on May 20 to $0.06471 on May 21, a 19.6% increase, reaching a two-month high. This indicates that Ether's price is strengthening against BTC.</p>
<h2><strong>Increasing Demand for Ethereum</strong></h2>
<p>CryptoQuant data reveals that demand for ETH has regained momentum following ETF approval rumors, with increased purchases from Long-Term Holders. CryptoQuant defines Long-Term Holders as addresses that accumulate ETH and never sell. Popular analyst Ali Martinez also observed similar trends, sharing a chart from Santiment on May 20 showing the increasing accumulation of ETH by whales.</p>
<h3><strong>Conclusion</strong></h3>
<p>In summary, the anticipation of Ethereum ETF approval in the US has significantly boosted ETH prices and investor confidence. The increase in open positions and the shift towards Ethereum over Bitcoin indicate a strong bullish trend. As demand for ETH continues to rise, the market outlook remains positive, suggesting potential further gains for Ethereum in the near future.</p>