As an analyst with over two decades of experience in the financial markets, I have seen my fair share of market fluctuations and trends. However, the recent surge in Ether (ETH) following Donald Trump’s presidential election win is particularly intriguing to me.
Over the past week, I’ve noticed a surge in my crypto investments, particularly Ethereum (ETH), as enthusiasm builds around the United States becoming more crypto-friendly following Donald Trump’s presidency. This positive shift has catapulted ETH prices over 37%, reaching heights not seen since July 24. It’s an exciting time to be a part of this dynamic market!
Currently, Ether is being traded for approximately $3,392, showing an increase in demand as indicated by the rising usage of spot Ethereum ETFs. Additionally, on-chain indicators signal that the upward trend for altcoins continues to be robust.
Ether open interest hits all-time highs
Over the past week, Ethereum’s price surge was likely triggered by a rise in long Ethereum positions in the futures market. According to CryptoQuant, a leading provider of onchain market insights, Ethereum’s total open interest in the derivatives market surged from 9.8 million ETH on November 5 to a record high of 13.2 million ETH by November 11.
Trader Alan recently noted on platform X that Ethereum (ETH) has at last hit an All-Time High (ATH) in futures Open Interest (OI), indicating that curiosity about altcoins is once again growing. He further emphasized that the market always takes notice of Ethereum.
Fellow trader Olek opined that Ether’s rising OI signals “rising liquidity and market engagement.”
Olek added:
“Ethereum, in particular, is flashing signals of a comeback, with heightened activity indicating the market is primed for movement.”
ETH demand increases
According to CryptoQuant data analysis, it appears that interest in Ethereum is picking up once more due to heightened on-chain activity, as indicated by the rising number of daily active addresses (DAA) on the Ethereum blockchain. As illustrated in the chart below, Ethereum’s DAA has grown from 306,751 on November 5 to 388,350 at the present moment on November 12. This translates to a 26% increase, following Donald Trump’s victory in the recent 2024 US presidential election.
In other words, the data from the blockchain indicates a rise in user activity related to Ether transactions on the main chain.
Based on information from DappRadar, there’s been a 8% rise in active addresses for Ethereum Decentralized Applications (DApps) during the last seven days. This trend is quite positive when you consider that other DeFi indicators like total value locked, transaction count, and Non-Fungible Token (NFT) volume have also experienced a surge over the same period.
Maintaining the expansion of Ethereum’s network is crucial, as this growth will drive the demand necessary for ETH prices to potentially reach around $4,000.
US spot Ether ETFs hit $295 million in inflows
After Donald Trump’s election win, there was a noticeable improvement in the recovery of Ether. As a result, exchange-traded funds (ETFs) focused on spot Ethereum started experiencing positive inflows again, following two consecutive days of net outflows totaling $73 million prior to the November 5th election.
On November 11th, I witnessed the single largest inflow of investments into these crypto products since they were introduced on July 23rd, totaling over $295 million, according to data from SoSoValue.
The Fidelity Ethereum Fund (FETH) led the pack with a record $115.5 million in inflows, while the BlackRock-issued iShares Ethereum Trust ETF (ETHA) was second with $101 million.
In a recent inflow ranking, the Grayscale Ethereum Mini Trust ETF (ETH) secured the third position with an investment of $63.3 million, while the Bitwise Ethereum ETF (ETHW) reported $15.6 million. Notably, all other U.S. spot Ether ETFs experienced no inflows.
During the week ending November 8th, data from CoinShares shows that Ethereum investment products experienced inflows amounting to $157 million. This brings the total inflows for the year so far to a massive $915 million, with assets under management now standing at an impressive $12 billion.
CoinShares noted that this is “the biggest influx since the ETF began operation in July of this year, indicating a significant positive change in investor attitudes.
Over the past week, we’ve seen consistent new investments in Ether, which aligns with a pattern and hints at an ongoing rise in institutional interest in Ether investment instruments. This sustained demand might drive its value closer to or even beyond the peak of $4,000 reached on March 12.
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2024-11-12 23:05