Backed ETH ETF Demand Up 160% After Trump Win – Ether Price To $4K?
Investors' interest in trading products based on Ether is increasing significantly, which could take the world's second largest cryptocurrency to a psychological level of $4,000.
Investors are looking to open backed Ether (ETH) positions that allow them to temporarily borrow money to expand the size of the trader's position.
Writing in a Nov. 28 X post, K33 Research Head of Research Vettel Lunde said demand for the VolatilityShares 2x Ether exchange-traded fund (ETF) has increased more than 160% since Nov. 5.
“The ETH equivalent exposure in the VolatilityShares 2x leveraged long ETH ETF has increased by 278,150 ETH (+160%) since November 5th. VolatilityShares now hold more than half of CME's ETH [open interest] (50.1%).
VolatilityShares 2x Leveraged Long ETH ETF. Source: Vetle Lunde
A 160% increase in demand was announced by US President Donald Trump in 2015. It comes just three weeks after he won the 2024 presidential election on November 5, which has boosted investors' interest in risky assets such as cryptocurrencies.
ETH&BTC, 1 year chart. Source: Cointelegraph
Ether price lags behind Bitcoin (BTC), market participants will see this change after the recent drop in ETH price. Based on emerging technical chart patterns, some analysts expect Ether to reach $20,000 at the top of the 2025 bull cycle.
Related: Bitcoin 30% Correction in Play Ahead of $100K BTC Rally – Analysts
ETF earnings and spot buying fuel Ether's rally to $4,000 – analyst
As Ether ETF flows turn positive, Ether's recent price gains can also be attributed to buying pressure.
This suggests that Ether is poised for more momentum in the coming weeks, Ryan Lee, chief analyst at BitGate Research, told Cointelegraph:
“Volatility in 1-day options remained stable, indicating that the recent move above $3,600 was not driven by the speculative move, but by spot accumulation. This trend suggests that ETH may continue to rise, and the ETH/BTC exchange rate is showing signs of a bearish and recovery.” , is worth watching.
This could set Ether up for a rally above the $4,000 psychological mark based on the technical chart formations shared by Trader Wolf in the November 27 X post.
“It's one way with like a 3-year cup and handle, it has a high resistance at 4k. After that cleanup, a measured move would put it north of $15K.
ETH/USD, cup-and-handle pattern. Source: Wolf
November's record stable coin entry to exchanges could contribute to Ether's price rally, Lee said.
“Fixed Science revenues are providing ongoing net income liquidity to the crypto market. […] This trend in revenue flows is unlikely to reverse in the short term, suggesting that the market's recovery will continue.
Related: US Bitcoin Reserve Could Take BTC To $1M During Trump Presidency
Bitcoin trading below $100,000 could be a boost to Ether's price.
Some analysts estimate it could go as high as 30% before breaking six-figure prices.
Still, Bitcoin's remaining range below $100,000 could be a positive push for Ether's price, crypto analyst Rect Capital wrote in a Nov. 28 X post:
“Bitcoin between $91,000 and $100,000 could be a recipe for Ethereum's lead and cash flow into smaller Altcoins.”
ETH/USD, 1-week chart. Source: Rect Capital
Continued Ether ETF earnings may contribute to Ether's price rally. Ether ETFs posted a fourth consecutive day of net positive inflows of more than $90 million on Nov. 27, according to Farside Investors data.
Spot Ether ETF Flows (US$, million). Source: Farside Investors
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