Highlights:
- Ethereum rose 8% to $2,884, with a market cap of $340 billion, following Trump’s pro-crypto election win.
- ETH’s rally shows confidence in DeFi, with indexes up 22% after Trump’s victory.
- A possible Fed rate cut could further boost Ethereum, encouraging investment in undervalued crypto assets.
The Ethereum price has surged 10 % in the last 24 hours to trade at $2884 as of 4 a.m. EST on a 1% spike in trading volume to $32 billion. This rally comes on the heels of Donald Trump’s victory in the presidential election. Ethereum had previously fluctuated between $2,300 and $2,600. It surged to levels not seen since August 2024.
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The rally of the cryptocurrency has been supported by the campaign promises of Donald Trump to make the U.S. “the best country in the world” for cryptocurrency, boosting expectations of a friendlier regulatory environment.
While the wider cryptocurrency market was going through some profit-taking, this jump showed particular optimism for Ethereum’s view on DeFi when it came to Trump’s presidency. DeFi indexes, which track major DeFi projects, jumped an average of 22% within 24 hours of the election.
BREAKING: 🇺🇸 Donald Trump Is Embracing The World Of Crypto!
“We’re embracing the future with crypto, and leaving the slow and outdated big banks behind.” – @realDonaldTrump
A new era is here for digital assets in the USA 🇺🇸 and that new era starts with DJT!
Do you believe… pic.twitter.com/Jgao37yeOV
— Good Morning Crypto (@AbsGMCrypto) November 2, 2024
Trump’s Crypto Stance Could Propel Ethereum
Donald Trump has been more vocal about his pro-crypto stance than Kamala Harris. He vowed to remove Gary Gensler, the head of the SEC, who has pursued a strict, enforcement-based mode of regulating digital currencies.
The price of Ethereum might also surge due to the Federal Reserve’s interest rate cut, which is likely to take place on November 7. Cuts in rates usually cheapen credit; thus, investors will mostly look for high-yielding and riskier assets like cryptocurrencies. If the Fed does cut rates, this could prove to be another catalyst for Ethereum and all altcoins, particularly since Ethereum is undervalued against many other assets. This could result in flows into Ethereum.
#Ethereum bounces upwards.
I think we'll continue that pace. The FED meeting on Thursday is important to watch, where they'll likely state another 25bps rate cut.
Then –> continuation on the markets and $90,000-100,000 for Bitcoin next. pic.twitter.com/NTPPmYJzAj
— Michaël van de Poppe (@CryptoMichNL) November 6, 2024
ETH Statistics
- ETH price: $2884
- market Capitalization: $340 billion
- Trading volume: $32 billion
- Circulating supply: 120 million
- Total supply: 120 million
Ethereum Price Spikes on a Strong Support Zone
The Ethereum chart on a daily timeframe shows a strong upward movement, indicating a potential bullish reversal. A key support level is established around $2,250, where Ethereum has consistently rebounded over the past few months.
The price broke through the resistance level around $2,800, aiming for higher targets, with the next significant resistance near the 200-day moving average (MA) at approximately $2,957. This support at $2,250 provides a solid foundation for the recent rally, suggesting increased buying interest.
Moving averages play an important role in this setup. The 50-day MA, currently at $2,545.58, is just below the price and could act as additional support if the price dips. Meanwhile, the 200-day MA, at $2,957.59, serves as a crucial resistance. A previous “golden cross” (when the 50-day MA crosses above the 200-day MA) occurred in June, indicating bullish potential, which seems to be reigniting as Ethereum approaches this resistance.
The recent surge above $2,800 is labelled as a “Bullish Reversal,” suggesting that investor sentiment has shifted positively, potentially reversing the previous downtrend. A successful break above the 200-day SMA would confirm this reversal, opening up the possibility of Ethereum targeting the $3,000 level and beyond.
The Relative Strength Index (RSI) is currently at 64.88, approaching the overbought territory (above 70). This indicates strong buying momentum, though some consolidation could occur if the RSI crosses into overbought levels. Overall, Ethereum’s outlook appears bullish, with key support at $2,250 and further gains likely if it clears the resistance at the 200-day MA.
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