Analysts believe Ethereum is likely to hit a new all-time high by December after achieving its first breakout in three months.
This growth is due to increased optimism about cryptocurrencies following the results of the recent general election.
Ethereum breaks the $3,000 barrier
Data shows that Ethereum has experienced a large price increase, which analysts say could be a result of Donald Trump’s victory in the US election.
The second-largest cryptocurrency by market capitalization peaked at $3,179 midday on Sunday, allowing it to breach the “important” $2,000 level, analysts said.
The rise in the price of Ethereum is seen as an indicator that the digital currency is gaining momentum and may be on the road to recovery after a period of stagnation, which is good news for ETH investors.
Many analysts have suggested that this growth is related to the incoming Trump administration. During the campaign, Trump had already hinted that he would be willing to impose more favorable regulations on cryptocurrencies. Therefore, his victory signaled great optimism about the future of cryptocurrency under his leadership.
Ethereum is one of the digital currencies riding this optimism, with its price rising 20% in the past week.
Analysts also point out that another major contributor to the bullish momentum is the significant increase in spot Ether ETF inflows. Data from November 8 showed inflows hit a weekly high of $85.9 million, an indicator that investors are increasingly confident in Ethereum’s long-term potential.
The highest record ever is possible
Market commentators said many indicators showed that a new all-time high for Ethereum could be just around the corner, with some saying it could soon reach $3,366. They added that ETH increased by 8% last Thursday.
Analysts have predicted that rising demand for top altcoins could push the cryptocurrency to new all-time highs by December. One of these growth indicators is the coin’s open interest, which is also increasing.
#Ethereum $ETH $3,000 today is just the beginning! https://t.co/gpAfqbe2v5
— Ali (@ali_charts) November 9, 2024
According to the report, ETH futures open interest (OI) has seen a huge rise. Over the past two days, it has increased by about 20% from $13.05 billion to $16.18 billion.
Analysts explained that OI refers to the total number of outstanding contracts in the derivatives market. They added that if OI rises with the price, it means new funds are entering the market to fuel the upward trend.
If Ethereum’s OI continues to grow, it could lead to a massive price surge that could see the digital coin reach new record highs before the end of the year.
Expected to be $10,000
Analyst Ali Martinez predicted that Ethereum is likely to reach the $10,000 level. He said crossing the $3,000 mark is just the beginning of an upward price movement.
Martinez argued that ETH is on the right track to hit the $10,000 level, comparing the cryptocurrency to the S&P 500.
Standard Chartered’s Geoffrey Kendrick agrees with the prediction, saying ETH could soon reach that level.
Kendrick explained that expectations of clearer cryptocurrency regulation from the new government and being perceived as a cryptocurrency-friendly government could fuel this massive growth.
Featured image by OneSafe, chart by TradingView
Source: NewsBTC.com