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Analysts see that Ethereum has the potential to hit a new all-time high by December after hitting its first breakout in three months.
The growth can be attributed to the growing bullish sentiment towards cryptocurrencies, fueled by the results of the recently concluded national elections.
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Ether breaks the $3,000 barrier
Data has shown that Ethereum has experienced a major price increase; a growth that analysts said could be the result of donald trump’s triumphant victory in the American elections.
Analysts said the second-largest cryptocurrency in terms of market capitalization could push past the “critical” $2,000 level, peaking at $3,179 on Sunday afternoon.
Ethereum’s price rise is seen as an indicator that the digital coin will gain strength after a period of stagnation and be on the road to recovery, which is good news for ETH investors.
Many analysts suggested the growth has something to do with the incoming Trump administration. During the campaign, Trump has already hinted that he is more inclined to favor more favorable regulations for cryptocurrencies. Therefore, his victory showed great optimism about the future of crypto under his leadership.
Ethereum is among the digital currencies that are building on this optimism, resulting in a 20% price increase in the past week.
Analysts also note that another major contributor to the bullish momentum is the significant rise in spot Ether ETF inflows. On November 8, data showed inflows hitting a weekly high of $85.9 million, an indicator that investors are growing more confident in Ether’s long-term potential.
Ether market cap currently at $385 billion. Chart: TradingView.com
An all-time high is possible
Market commentators said many indicators showed that a new all-time high for Ethereum could be imminent, and it could soon reach $3,366. They added that ETH rose 8% last Thursday.
Analysts predicted the crypto could hit a new all-time high in December, fueled by growing demand for the top altcoin. One of these growth indicators is that of the currency open interest which is also emerging.
#Ethereum $ETH at $3,000 today is just the beginning! https://t.co/gpAfqbe2v5
— Ali (@ali_charts) November 9, 2024
Reports illustrated that ETH’s open interest (OI) saw a massive increase. It rose about 20% to $16.18 billion from $13.05 billion in the previous two days.
Analysts explained that OI refers to the total number of outstanding contracts in a derivatives market. They added that if OI rose along with prices, it meant new funds were entering the market to fuel an upward trend.
If Ethereum’s OI continues to grow, it could result in a massive price increase, pushing the digital coin to a new all-time high before the end of the year.
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The $10,000 projection
Analyst Ali Martinez predicted that there is a possibility that Ethereum could reach the $10,000 mark, saying that crossing the $3,000 level is just the beginning of the upward price movement.
Martinez claimed that ETH is on track to reach the $10,000 level, comparing the crypto to the S&P 500.
Standard Chartered’s Geoffrey Kendrick agrees with the forecast and says ETH could reach that level soon.
Kendrick explained that anticipating clearer crypto regulations from the new administration and what is perceived as a crypto-friendly government could fuel this massive growth.
Featured image of OneSafe, chart from TradingView