The US Securities and Exchange Commission's (SEC) approval of Ethereum (ETH) Exchange-Traded Funds (ETFs) has sparked increased volatility and market optimism. Analysts predict potential rallies and significant future growth, with some forecasting a price explosion as high as $20,000.

The approval, which occurred on May 24, has seen ETH's price fluctuate between $3,650 and $3,950, before settling around $3,800. The green light from the SEC is expected to attract major world banks and financial institutions to Ethereum's ecosystem.

Positive on-chain metrics, such as a rising Total Value Locked (TVL) and negative exchange netflow, suggest a possible bull run for Ethereum. The TVL on Ethereum has risen impressively since October 2023 and currently stands at almost $65 billion. This indicates more capital is flowing into the ecosystem, reflecting positive market sentiment.

The Ethereum exchange netflow has been predominantly negative in the last seven days, a shift considered bullish for ETH's valuation as it reduces immediate selling pressure. These factors combined suggest a bright future for Ethereum following the ETF approvals.