In the third verse, the text here is "Now above the sky He's king." The clause "He's king" is sung to the notes D E, so pitchwise, this really is above "the sky," which is sung to the notes G C.
The next line is "Where the angels ever sing," sung to this phrase:
"Sing" is sung with a melisma (A G), and this elongation gives a sense of the duration of "ever."