Ethereum (ETH) surged nearly 3% yesterday as investors displayed strong bullish sentiment. Michael Saylor also weighed in on the recent approval of a spot ETH ETF by the US SEC. 

Following ETH’s price increase, QCP Capital observed that market participants are increasingly bullish on the leading altcoin. They are anticipating significant institutional demand once spot ETH ETFs become available. 

ETH has surged about 27% since last week as the SEC’s approval of issuers’ 19b-4 filings by exchanges became apparent. Although the SEC has yet to approve S-1 applications, analysts believe approval is inevitable, fueling extreme bullish sentiment among investors. This optimism is reflected in the ETH Fear and Greed Index, which hit 76 on Wednesday, indicating increased investor confidence.

However, QCP Capital cautioned, “While we are structurally positive on ETH, we don’t foresee a major breakout until there’s more clarity on S-1 approvals and inflow data, which should come soon.”

Meanwhile, Grayscale CEO Michael Saylor, who previously predicted that the SEC would reject spot ETH ETF applications, has changed his stance following the approval. Saylor remarked, “You have to think all your models.” He added that a spot Ethereum ETF benefits Bitcoin, as it, along with other crypto assets,” serves as another line of defense for Bitcoin.”

Ethereum is trading around $3,924 on Monday after nearly a 3% gain. ETH bulls are showing strength, with only $7.76 million in long liquidations compared to $15.59 million in short liquidations. 

While ETH has twice been rejected at the $4,000 key level since the ETF approval, it may break past this level when the market fully resumes on Tuesday. If ETH surpasses $4,000, it could target the $4,093 resistance — its highest level since December 2021. The $3,605 level might provide support if bullish momentum slows.