Ether to break 4 thousand dollars before Trump’s inauguration – analyst
Ether's price is set for further upside based on rising investor interest and expectations of positive crypto regulations heading into 2025, which could set it up for a rally above $4,000.
Ether (ETH) has surpassed Bitcoin (BTC) in open interest, with more than $8.9 billion worth of open contracts, compared to Bitcoin's $6.7 billion.
ETH and BTC open interest. Source: Block Scholes x Bybit Analytics
According to a Nov. 28 report by Block Scholes and Bybit Analytics, the decline in Bitcoin open interest is “the result of speculative positioning” rather than mass liquidity.
This volatility could put Ether on track to rally above $4,000 by the time President-elect Donald Trump takes office on January 20, a Bybit spokesperson told Cointelegraph.
“Bybit Analysts See $4,000 on Horizon for ETH Before January 20th.”
ETH/USD, 1 year chart. Source: Cointelegraph
Investor optimism has been growing since November 21, when U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler announced his departure from the regulatory agency on January 20, shortly before Trump took office.
Related: ETH ETF Demand Boosts 160% After Trump Wins – Ether Price To $4K?
As ETH boosts BTC production, the price of Ether reaches $4,000
When Ether went through Bitcoin's price action last year, it started to gain in short order. While Ether's price is up more than 34%, Bitcoin is up more than 31%, with Ether outperforming Bitcoin last month.
BTCÐ, 1-month chart. Source: Cointelegraph
In another bright price sign, Ether outperformed BTC in terms of futures yield, showing a “strongly inverted yield curve,” the report added.
“1-week-expiration futures trade at an annualized rate of about 25% of the spot. The act of controlling futures price ‘basis' by institutions to measure price and buy futures positions has previously floated BTC's strong position as a driver of ETF flows.”
This additional income could signal institutional flows into US spot Ether exchange-traded funds (ETFs), which could significantly increase the price of Ether.
Ether ETF Flow (USD, million). Source: Farside Investors
ETH ETFs are on a four-day winning streak after accumulating more than $90 million worth of ether on November 27, according to data from Farside Investors.
Investor interest in the world's second-largest cryptocurrency has surged more than 160% since Trump's victory.
Related: Crypto Founders Share Debanking Stories During ‘Operation Chokepoint 2.0'
X posts related to ETH. Source: Kate Young Ju/Ki Young Ju
Reflecting this growing interest, X posts related to Ether increased by 282% in the three days to November 28, to 1.1 million, said CryptoQuant founder Ki Yang Yu, through his altcoin analysis account.
Magazine: Unstable Coins: Devaluation, Bankruptcy and Other Risks Ahead.
