Highlights:
- Ethereum price is currently trending towards a local high of $3442.4
- A rally through this high could push Ethereum to $4000
- Rising institutional uptake could push Ethereum to $4000 or higher
Ethereum has moved little today, but the overall momentum is on the upside. In the last 24 hours, Ethereum has gained by 0.14% to trade at $3118.40. Trading volumes are also on the rise, reflecting the bullish sentiment underlying Ethereum’s price action. At the time of going to press, Ethereum trading volumes were up by 45.12% to hit a high of $36.61 billion.
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These rising volumes reflect the rising bullish sentiment around Ethereum after underperforming the broader market for over a year. The reawakening of Ethereum is also evident in the fact that institutional inflows into the Ethereum network are gaining traction.
Ethereum ETF Inflows Hit $646 Million
According to data from CoinShares, ETF data indicates that, finally, Ethereum ETF volumes are beginning to reflect those of Bitcoin. On Monday, institutional investments in cryptocurrency-linked products hit a high of $138 billion, reflecting a week of rising flow of money into crypto.
Ethereum ETFs were among the top contributors to these rising inflows hitting a high of $646 million. This is a show of the rising investor interest in Ethereum and reflects investor expectations that Ethereum could be headed much higher from its current price levels.
📈 Digital asset inflows reached US$2.2bn last week, bringing year-to-date inflows to a record US$33.5bn. #Bitcoin and #Ethereum saw inflows of US$1.48bn and US$646m respectively. Short bitcoin investment products saw inflows of US$49m.
Full report: https://t.co/W1BDGvhJ3B pic.twitter.com/45YkiVTOyV
— CoinShares (@CoinSharesCo) November 18, 2024
Ethereum Price Could Surge With Republican Crypto Policies
There are rational reasons to believe in Ethereum as a growth asset besides speculation. Like the rest of the market, Ethereum is expected to benefit immensely from the policies of Donald Trump. The incoming US president and a Republican-dominated legislative arm of government are expected to push for pro-crypto policies, a factor that could help drive adoption.
There is also the fact that the Federal Reserve continues to loosen the monetary policy, making it easier for money to flow into high-risk assets. For Ethereum, which now has ETFs, this means institutional money looking for exposure to alternative assets could push more money into it. Already this is happening as is reflected in the ETF inflows into Ethereum since the day Donald Trump was elected.
Tether Mints $1 Billion USDT on Ethereum
Ethereum is also boosted by the fact that it is still the go-to network when it comes to issuing stablecoins. The latest news hitting the market is that Tether has minted an additional $1 billion USDT on the Ethereum network. This brings the total of USDT minted on the Ethereum network to $62.9 billion, ahead of Tron which has $62.7 billion. This is a big deal for Ethereum in two ways.
Tether Treasury minted 1B $USDT on #Ethereum again 20 mins ago.#TetherTreasury has minted a total of 32B $USDT in the past year!https://t.co/pqlKJiOiTHhttps://t.co/fGeHJgbwvS pic.twitter.com/ZzYQoo2XAO
— Lookonchain (@lookonchain) August 13, 2024
Solidifying Ethereum Dominance as a Top L1
First, it is an indication that despite the growing competition in the layer-1 space, Ethereum remains the dominant network. It could be due to its core advantages such as decentralization and trustless nature, factors that could play a role in its value growth long term.
Rising Demand for Crypto as an Asset Class
The second advantage not only benefits not just Ethereum but the entire crypto market. Whenever stablecoin issuers like Tether go on a minting spree, it usually indicates rising demand across the market. This printing could indicate that more investors are anticipating a parabolic price run across the market. For Ethereum which is already building up momentum, this could open the way for a rally to new highs in a short time.
Ethereum Price Gains After Establishing Solid Support
The charts paint an equally optimistic picture for Ethereum. Ethereum is gaining upside after a recent correction hit strong support at $3058.7.
However, for the upside to be confirmed, Ethereum needs to rally through the local high of $3442.4. A rally through this price level would put the $3539.4 resistance in focus. Pushing through this level could see Ethereum price rally to $4000 in the short term.
With the combination of factors such as rising institutional buying, and more stablecoin minting on Ethereum, more upside can be expected. In the short term, $4000 is a key target for Ethereum bulls.
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