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Trump’s election victory has inspired more optimism among crypto analysts, with some expecting Bitcoin to breach $100,000 before the end of 2024, boosting Ether’s price along the way.
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Analysts are eying an Ether rally above $3,200, driven by the growing risk appetite after Donald Trump’s victory in the United States presidential election.
On Nov. 6, Trump was declared the winner of the presidential election, securing his second term as the 47th president of the US.
Inflows into spot Ether (ETH) exchange-traded funds (ETFs) have turned positive after the US election results, with the ETFs seeing $52.3 million in net positive inflows on Nov. 6 and $79.7 million on Nov. 7, Farside Investors data shows.
Ether ETF inflows in US dollars (millions). Source: Farside Investors
The ETF inflows, along with a growing investor appetite boosted by a Republican victory, could help Ether’s price reach $3,200 in the short term, according to Bitfinex analysts.
The analysts told Cointelegraph:
“We do expect Ether to soon break out of its long-term range, where there has been heavy accumulation. Our target for the next few months remains at $3,200, and as soon as Bitcoin’s market cap ratio against the total market cap tops — our expectation is that it will be around 60% — we can expect Ether to have a run.”
Ether/USD, all-time chart. Source: Cointelegraph
Bitcoin’s (BTC) dominance stood at 60.4% as of 8:10 am UTC on Nov. 8, suggesting Ether may be preparing for an imminent breakout, based on the analysis.
Increasingly, more analysts are bullish on the crypto market’s post-election trajectory thanks to Trump’s upcoming presidential term. Notably, Bitget Research’s chief analyst, Ryan Lee, expects Bitcoin to breach $100,000 before the end of 2024.
Related: Two Bitcoin whales buy $142M BTC after Trump’s win
Open interest at “abnormal” $1.3 million points at Ether breakout within a month — Analysts
The Ether price is already becoming more volatile due to increased spot market buying after the elections.
This dynamic, along with Ether’s growing open interest, will set the stage for the next breakout in the short term, Bitfinex analysts explained:
“Open interest has also skewed to abnormal levels, hitting $1.3 million versus just $800k in August in total, and our view based on Cumulative Volume Delta and bid/ask skew data that much of this is on the short side. This leads us to believe that in a month, Ether should start seeing good upside.”
Showcasing the growing investor conviction, Bitcoin’s price reached a new all-time high above $76,400 on Nov. 6, shortly after Trump was elected president.
Related: Top Polymarket whale profits $20M from Trump victory
Trump’s victory could fast-track the first staked Ether ETF — Nansen
A Trump administration will likely embrace more crypto industry innovation, including the debut of the first staked Ether ETF, according to Edward Wilson, an analyst at Nansen.
The analyst told Cointelegraph:
“As the regulatory environment will likely be pro-crypto, we may even see a staked ETH ETF approved early in this new administration, which will fully leverage the benefits of ETH as an asset. If this occurs, then ETH will become an exciting asset to watch. Put differently, ETH is cool again.”
More Ether-based ETFs could help Ether’s price rise above its previous all-time high of $4,800, recorded on Nov. 16, 2021, nearly three years ago.
For Bitcoin, ETF inflows accounted for about 75% of new investment in the world’s first cryptocurrency when its price rose above $50,000 in February 2024, a month after spot BTC ETFs debuted for trading in the US.
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This article first appeared at Cointelegraph.com News
