Highlights:
- Ethereum is currently trending towards the $3539.4 resistance
- A rally through the$3539.4 resistance could see Ethereum rally to $4k short-term
- Rising institutional interest in Ethereum could trigger price rally
Ethereum is in the green today, moving in the overall direction of the market. When going to press, Ethereum was up by 0.04% to trade at $3,202.97. While there is little change in the day, volumes are on the rise. They are up by 32.57% to stand at $45.17 billion in the day.
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Regulatory Environment Favors Ethereum
According to a new market report published by a top crypto firm, Solana (SOL) and Ethereum (ETH) could do well if the US regulatory approach towards digital assets changed under President Trump. Such optimism regarding Trump’s election stems from heated rhetoric, especially on his part, in favor of the crypto community.
The report noted a corresponding shift in the US dollar and Treasury yields. In addition, Bitcoin’s price has been going up in value as investors welcome the incoming Republican government and its policies.
According to the report, such conditions make SOL and ETH high-value assets this cycle. Ethereum has already conformed to this prediction. It has sustained demand since Trump’s election and recently rallied through $3,000. Comparatively, the ETHBTC ratio is still low, suggesting potential for the asset’s other price growth.
Rising Institutional Demand for Ethereum
The expected Trump policies have also seen increased institutional demand for Ethereum and other top altcoins. The price of Ethereum has surged past the $3,000 level, in part due to a strong institutional interest in its ETF offerings.
#Bitcoin at $75.691, $236 Million in ETF Inflows Yesterday. This is nice but look at this:#Ethereum at $2905, $53 Million in ETF Inflows.
53 Million might seem small but it’s a record day for ETH ETFs. Looks like they waited for the #Trump win to put in size. pic.twitter.com/qzG5OyoXWJ
— Tobias Reisner (@reisnertobias) November 8, 2024
The Ethereum ETF market managed to see a streak of inflows after a pause for three consecutive days, soothing fears of a decreasing interest in the product. This comeback is significant since it was spearheaded by some of the big players in the industry like BlackRock and Fidelity.
Blackrock’s ETF (ETHA) had the most inflow at $59.8 million. Fidelity (FETH) followed with inflows of $18.4 million. Total inflows reached $85.9 million on Friday, November 8. This made last week a pivotal one for Ethereum, one that likely positioned Ethereum on course to retest its all-time highs.
Technical Developments in the Ethereum Ecosystem
Various developments, such as the Mekong testnet and the upcoming Pectra upgrade, have also turned the tides in favor of Ethereum. The Pectra upgrade slated for 2025 aims at improving network efficiency. This could, in turn, draw in more crypto investors, thus generating inflows into ETFs while pushing Ethereum prices higher.
The Ethereum foundation just launched the Mekong Testnet as a preview for its upcoming Pectra upgrade, scheduled for early 2025.
This limited-run test environment is a big deal because it lets developers and users test out Pectra’s new features ahead of time.
Why does that… pic.twitter.com/8gzpHqYI2H
— Quimer {H1} (@quimer_) November 8, 2024
Technical Analysis – Ethereum Price Headed for $3539.4 Resistance
From the charts, Ethereum has rallied through the $2929.7 resistance. If the current momentum continues, the key level to watch will be the $3539.4 resistance. A rally through this resistance could see Ethereum rally to $4,000 in the short term.
On the other hand, if Ethereum bears retake control, the key level to watch would be the $2929.7 now support. A drop through this level could see Ethereum drop back to around $2500. Of these scenarios, the odds are higher that Ethereum is headed for the $3539.4 resistance and potentially to $4000.
Recap
Overall, the odds favor an Ethereum rally to $4,000 or higher. From expectations of pro-crypto policies in America to rising inflows into Ethereum ETFs, bulls are in control. Ethereum could soon rally through its all-time high of $4800.
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