When Trump wins the presidency, the price of Ethereum will reach $2,800
TLDR
ETH surges more than 10% to $2,800 following Trump's election Trump promised during the campaign to make the US the center of cryptocurrency DeFi indices have risen an average of 22% in the past 24 hours Market sentiment has increased optimism for the DeFi sector under Trump Technical indicators suggest a continuation. High speed for ETH
The price of Ethereum rose above $2,800 on November 7, 2024, a 10% increase following Donald Trump's presidential election win.
The cryptocurrency, which had been trading between $2,300 and $2,600, reached levels not seen since early August 2024.
The move in prices comes as investors react to Trump's campaign promises regarding regulatory oversight.
During the campaign, Trump promised to establish the United States as a leading cryptocurrency center, suggesting that he may change regulatory conditions more favorable to the industry.
Ethereum's rise in value stands out against the broader cryptocurrency market, where many other digital assets have seen gains.
This voter turnout suggests some optimism for the future of decentralized finance (DeFi) under the Trump administration.
The Defy Indices, which track the performance of major decentralized finance projects, recorded an average increase of 22 percent in the 24 hours following the election results, according to CoinGecko data.
This outstrips the broader cryptocurrency market, where the CoinDesk 20 Index only rose 3.4% over the same period.
Arthur Cheng, co-founder of Defiance Capital, noted the potential impact of a Trump victory on social media platform X.
“The DeFi renaissance thesis is going as expected with Trump's deregulation and crypto-friendly policies and the Republican administration and Senate's rule-making,” Cheong wrote.
Technical indicators support the current upward trend. The currency is trading above its 100-hourly simple moving average, with a new labor trend line forming support at $2,730. Trading data shows increasing volume associated with price action, suggesting sustained buyer interest.
The market's reaction appears to be related to expectations of deregulation under the Trump administration.
Industry observers anticipate possible changes to how tokens are classified, with some suggesting a move to treat certain tokens as commodities rather than securities.
Social media sentiment analysis by Mindshare indicates that discussions related to DeFi are currently leading other trending sectors, artificial intelligence and meme cryptocurrencies, according to Kaito data.
DeFi is more than memecoins for mind sharing today.
AI is going down but still on top. pic.twitter.com/04kcxM0xrX
— Kaito AI 🌊 (@_kaitoai) November 6, 2024
Some projects like Aave have already demonstrated strong fundamentals. Reports indicate that Ave's quarterly revenue surpassed the previous peak in the fourth quarter of 2021, suggesting strength in the Diffie sector independent of political developments.
Another factor that could affect the positive sentiment in the cryptocurrency space was the Trump family's relationship with World Liberty Financial, which was picked up by market participants.
Looking at some price levels, Ethereum has found initial resistance near $2,850, with additional resistance at $2,880. Support levels have formed around $2,800, with strong support at $2,720.
Trading activity shows price holding above the 23.6% Fibonacci retracement level, calculated from the recent move between $2,357 and $2,848, indicating continued bullish momentum.
The hourly MACD (Moving Average Convergence Divergence) indicator shows increasing momentum in the bullish zone, while the RSI (Relative Strength Index) remains above the 50 mark, indicating healthy buying pressure.
Initial support on any downside is seen around $2,800, with additional support levels at $2,720 and $2,650. Market watchers note that these levels are entry points for traders looking to join an uptrend.
The latest data shows continuous trading volume above average levels, which shows that Ethereum will continue to demand at these price points.
