Ether Surges Again, Targeting the $4000 Mark as U.S. Listed Whale "Turns" to Support, Sending Strong Signals

Ether experienced a sharp short-term surge, breaking through $3930 and once again challenging the $4000 mark. MicroStrategy's CEO Michael Saylor, a prominent figure in the U.S. market, has shifted his stance on Ethereum. He now believes that the approval of an Ether spot ETF by the U.S. Securities and Exchange Commission (SEC) will provide Bitcoin with an additional layer of defense.

Since the SEC approved the 19b-4 filing for Ether spot ETF applications last week, Ether has been fluctuating between $3700 and $3900, with fierce competition between bulls and bears, leading to no clear price trend. However, on Monday, Ether witnessed another short-term surge.

Saylor expressed his views over the weekend on the "What Bitcoin Did" podcast with Bitcoin podcaster Peter McCormack. He said, "Is it good or bad for Bitcoin if the SEC approves an Ether spot ETF? Yes, I think it’s good for Bitcoin because with the support of the entire crypto industry, we will be stronger politically."

Last week, the SEC approved eight Ether spot ETFs to be listed on their respective exchanges. Saylor remarked, "They are another line of defense for Bitcoin."

He reiterated that this approval would accelerate institutional adoption, as previously cautious investors would now recognize cryptocurrencies as a legitimate asset class. Additionally, Saylor explained that funds will be allocated among various crypto assets, but Bitcoin will still receive the majority of the investment as the "leader" of cryptocurrencies.

He claimed, "I think mainstream investors will say, 'Oh, now there’s a crypto asset class. Maybe we’ll allocate 5% or 10% to this asset class, but Bitcoin will account for 60% or 70% of that.'"

Saylor admitted that his view on the Ether spot ETF had changed because he previously believed there was little chance of SEC approval.

He explained, "Two weeks ago, it seemed like Bitcoin would be the only asset to be securitized and offered in a spot ETF by Wall Street institutions, and it would be the only legitimate crypto asset to gain widespread acceptance."

In early May, Saylor predicted that the SEC would classify Ether as a security, followed by Binance Coin (BNB), Solana (SOL), and Ripple (XRP) being treated similarly.

He previously stated, "These tokens will never be packaged into spot ETFs, accepted by Wall Street, or by mainstream institutional investors as crypto assets."

But now, it appears he has changed his original stance.

"Is Saylor's next step to buy Ether? This is a crucial 180-degree shift," added crypto analyst Ricky Bobbyy.

Looking ahead, the U.S. is set to release the latest Personal Consumption Expenditures (PCE) index this Friday. Last week, the Federal Reserve's meeting minutes indicated that if inflation does not cool as expected, interest rates will be kept at current levels for a longer time. April’s PCE will be one of the key economic reference points.

Additionally, the Federal Reserve will release its Beige Book on the economy and reveal the weekly jobless claims data.

Monday is Memorial Day in the U.S., and the stock market will be closed for the day.