Ethereum Price Prediction – ETH Rally to $4000 Could Finally Be Underway

Highlights:

• Ethereum bulls have shown strength in the past 24 hours 
• Price strength indicates that investors are moving to Ethereum as Bitcoin stalls
• Possible approval of Ethereum staking ETFs could add to the momentum 

Ethereum (ETH) is up today as cryptocurrencies start to pick up again. At the time of going to press, Ethereum was trading at $2614.97, up by 5.30%. Ethereum trading volumes have also shot up in the day, up by 56.40% to stand at $19.42 billion. This indicates that bullish sentiment is returning and traders are willing to take a risk by investing in Ethereum at current prices. Multiple factors are driving this excitement, and Ethereum could hit new highs.

Capital Increasingly Rotating to Ethereum and Other Altcoins

One of them is the increased rotation of capital from Bitcoin to altcoins. One of the indicators of this rotation is that Bitcoin’s dominance has declined after peaking in early May. This decline points to altcoin prices rising faster than Bitcoin at the moment. The rotation into altcoins is also evident in the inflows into cryptocurrency ETFs in the past week.

In the past week, Bitcoin ETFs saw heavy outflows, with outflows from some ETFs hitting an all-time high. Ethereum ETFs hit highs of over $300 million in the same week. This means the rotation is not only into general altcoins but also Ethereum. This could indicate that Ethereum could be set for a significant surge in value in the short to medium term.

Quietly $ETH is having its best month of ETF inflows since December, with over $400M of capital pouring in. That’s more than the last four months combined (-$176M) and marks the third best month since ETH spot ETFs launched last July.

Buckle up pic.twitter.com/90laOZqWoW

— David Alexander II (@Mega_Fund) May 29, 2025

ETH ETF Staking Rumors Could Boost Price in the Short Term

The possibility of Ethereum staking ETFs could also trigger a price rally. Staking ETFs are a big deal because they would allow investors to earn yield from their Ethereum holdings. This is a big deal in that it would attract unprecedented liquidity into Ethereum. The result is that Ethereum could be headed higher in the short to medium term based on FOMO around the expectation of such ETFs, based on the old trading mantra of buy the rumor, which triggers price rallies ahead of big news.

Breaking: #Ethereum ($ETH) and #Solana ($SOL) staking ETFs could be approved as soon as June 2025 – REX Shares and Osprey Funds have filed with the SEC to launch staking ETFs for Ethereum and Solana, utilizing a structure under the Investment Company Act of 1940 (“40 Act”) that… pic.twitter.com/pZ0DzrYr2q

— MartyParty (@martypartymusic) May 31, 2025

Ethereum Increasingly Perceived as Undervalued

Going forward, Ethereum could also get a boost because it is perceived to be undervalued. That’s because Ethereum price has been going down against Bitcoin for a long time, and at some point, it was a straight line down. However, even as this was happening, Ethereum adoption continued to rise, including growing investments in Ethereum ETFs. This means there is a gap between Ethereum’s prevailing price and its true value. The impact is that as confidence grows and the altseason is back, Ethereum could be headed to new highs soon.

$ETH/BTC just bounced off a major historical support level that’s held since 2019.

This is the exact zone where ETH has kicked off multi-month runs before.

If history rhymes, ETH could start reclaiming strength vs $BTC heading into late 2025.

Rotation season brewing? pic.twitter.com/S3uhRYkj5b

— nordin.eth (@nordin_eth) June 3, 2025

Continued Upgrades Make Ethereum Appealing to Investors

ETH price could also get a boost because it is continually getting improvements that make it a better network to use. Recently, Ethereum had some upgrades that positively impacted transaction costs and scalability.

More upgrades are coming, and others are being proposed, such as the proposal to make Ethereum private. This would make it more usable as cash and help it compete in an increasingly cashless society. All these improvements continually add to Ethereum’s intrinsic value and could play a role in its price appreciation in the future. That’s especially true now that capital seems to flow more into altcoins than Bitcoin.

Remember when you were like "I wish someone would spend way too much time making an overly complicated graphic that no one will read that shows all the Ethereum upgrades"?

Well I gotchu fam pic.twitter.com/O1AWX0nl6T

— nixo.eth (@nixorokish) June 2, 2025

Technical Analysis – ETH Range Bound But Bulls Gaining Momentum

Ethereum is trading in a narrow range between the $2742.8 resistance and the $2455.2 support. However, the price is accelerating towards $2742.8, and trading volumes are rising.

ETH price could hit $3000 if the $2742.8 resistance is broken. However, if bears take control and push Ethereum through the $2455.2 support, a price correction below $2000 could follow.