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Analysts see this Ethereum It has the potential to reach a new all-time high by December after making its first breakout in three months.
Its growth can be attributed to the growing optimistic sentiment about cryptocurrencies fueled by the results of the recently concluded national elections.
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Ether breaks the $3,000 barrier
Data showed that the price of Ethereum saw a significant rise – a growth that analysts said could be the result of Donald Trump’s triumphant victory in the presidential election. American elections.
The second-largest cryptocurrency by market capitalization managed to cross the “critical” level of $2,000, peaking at $3,179 at noon on Sunday, analysts said.
The rise in Ethereum prices is seen as an indication that after a period of stagnation, the digital currency will gain momentum and will be on its way to recovery, which is good news for Ethereum investors.
Many analysts pointed out that the growth has something to do with the incoming Trump administration. During the election campaign, Trump had already hinted that he was more inclined to create more favorable regulations for cryptocurrencies. Hence, his victory indicates great optimism about the future of cryptocurrencies under his leadership.
Ethereum is among the cryptocurrencies benefiting from this optimism, sending prices up 20% in the past week.
Analysts also point out that another major contributor to the bullish momentum is the significant increase in the spot ether price ETF flows. On November 8, data showed that inflows hit a weekly high of $85.9 million, an indication that investors are becoming more confident about Ethereum’s long-term potential.
Ether market cap currently at $385 billion. Chart: TradingView.com
It is possible to achieve an all-time high
Market commentators said several indicators showed that a new all-time high for Ethereum could be just around the corner, saying it could reach $3,366 anytime soon. They added that ETH rose by 8% last Thursday.
Analysts expect the cryptocurrency to reach a new all-time high by December, supported by growing demand for top altcoins. One such indicator of growth is currency Open interest Which is also on the rise.
#Ethereum $ Ethereum At $3,000 today it’s just the beginning! https://t.co/gpAfqbe2v5
– Ali (@ali_charts) November 9, 2024
Reports have shown that open interest (OI) for ETH futures has seen a massive spike. It increased by about 20% to $16.18 billion from $13.05 billion in the past two days.
Analysts explained that OI refers to the total number of contracts outstanding in the derivatives market. They added that if the price of inward investment rises with prices, this means that new money is entering the market to fuel the upward trend.
If Ethereum’s OI continues to grow, it could lead to a significant price spike, pushing the digital currency to reach a new record high before the end of the year.
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Projection $10,000
Analyst Ali Martinez predicted that there is a possibility that Ethereum will reach the $10,000 level, saying that breaching the $3,000 level is just the beginning of the upward price movement.
Martinez claimed that ETH is on track to reach the $10,000 level, comparing the cryptocurrency to the S&P 500 Index.
Jeffrey Kendrick of Standard Chartered Bank agrees with this prediction, saying that Ethereum could reach this level soon.
Kendrick explained that the expectation of clearer cryptocurrency regulations from the new administration and what is seen as a cryptocurrency-friendly government could fuel this explosive growth.
Featured image from OneSafe, chart from TradingView