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Analysts see Ethereum as having the potential to hit an all-time high in December after experiencing its first breakout in three months.
Its growth can be attributed to the growing confidence in cryptocurrencies fueled by the results of the recently concluded national elections.
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Ether Breaks the $3,000 Barrier
The data showed that Ethereum experienced a large price increase – a growth that analysts say may be the result of Donald Trump’s victory in the US election.
Analysts say the second largest crypto by market capitalization was able to pass the “critical” level of $2,000, reaching $3,179 on Sunday afternoon.
Ethereum’s price rally is seen as an indication that after a period of stagnation, the digital currency will gain momentum and will be on the way to recovery, which is good news for ETH investors.
Many analysts have suggested that the growth has something to do with the incoming Trump administration. During the campaign, Trump has already indicated that he is more inclined to have favorable regulations on cryptocurrencies. Therefore, his victory showed great optimism for the future of crypto under his leadership.
Ethereum is among the digital currencies riding on this prospect, leading to a 20% price increase in the past week.
Analysts also note that another factor contributing to the bullish trend is the significant increase in Ether ETF inflows. On November 8, data showed that revenue recorded a weekly high of 85.9 million, an indication that investors are gaining more confidence in Ether’s long-term potential.
Ether market cap currently at $385 billion. Chart: TradingView.com
All Time Highs Are Possible
Market analysts say that many indicators have shown that Ethereum’s new all-time high may be around the corner, saying that it could reach $3,366 anytime soon. They added that ETH was up 8% last Thursday.
Analysts have predicted that the crypto could hit an all-time high in December, fueled by growing demand for the top altcoin. One of these indicators of growth is the open interest rate of the coin which is also increasing.
#Ethereum $ETH $3,000 today is just the beginning!
– Ali (@ali_charts) November 9, 2024
Reports have shown that ETH’s future open interest (OI) has seen a significant increase. It rose nearly 20% to $16.18 billion from $13.05 billion two days ago.
Analysts explained that OI refers to the total number of contracts outstanding in the derivatives market. They added that when OI rises along with prices, it means that new funds enter the market to continue the upward trend.
If Ethereum’s OI continues to grow, it could result in massive price increases, propelling the digital coin to a new record high before the end of the year.
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$10,000 Projection
Analyst Ali Martinez predicted that it is possible that Ethereum could reach the $10,000 mark, saying that breaking the $3,000 level is only the beginning of the price increase.
Martinez said ETH is on track to reach the $10,000 level, comparing the crypto to the S&P 500.
Standard Chartered’s Geoffrey Kendrick agrees with the prediction, saying that ETH may reach that level soon.
Kendrick explained that the expectation of clear crypto regulations by the new administration and what is considered a crypto-friendly government could fuel this massive growth.
Featured image from OneSafe, chart from TradingView