Analysts are anticipating that Ethereum, the second-largest cryptocurrency by market capitalization, will surpass the $3,200 mark due to two current bullish factors affecting the asset. Donald Trump’s election victory midweek has created a ripple effect in the cryptocurrency market, leading to surges in various crypto assets. Analysts now predict that Bitcoin is expected to cross $100,000 before the end of 2024, with Ethereum also benefiting from this upward trend. Experts believe that Trump’s election win has positively influenced crypto investors, enhancing their risk appetite.
This sentiment has played a crucial role in the second bullish factor for Ethereum’s rally: the positive inflows into spot Ethereum Exchange-Traded Funds (ETFs). According to data from Farside Investors, inflows into spot Ether ETFs turned positive after the U.S. election results, with these ETFs seeing $52.3 million in net positive inflows on November 6 and $79.7 million on November 7. These inflows are indicative of the increased risk appetite among institutional investors, stemming from the belief that a Trump victory bodes well for the crypto market.
Analysts from Bitfinex emphasized that Trump’s victory could facilitate Ethereum’s ascent past the $3,200 mark in the short term. “We do expect Ether to soon break out of its long-term range, where there has been heavy accumulation. Our target for the next few months remains at $3,200.
As soon as Bitcoin’s market cap ratio against the total market cap hits around 60%, we anticipate that Ether will rally,” the Bitfinex analysts stated. More analysts are growing increasingly confident about the post-election surge of cryptocurrency assets. Ryan Lee, chief analyst at Bitget Research, expects Bitcoin to breach the $100,000 mark before the end of 2024.
In addition to the post-election rally of Bitcoin and other crypto assets like Ethereum, several analysts believe that a Trump administration would be favorable for more innovation in the cryptocurrency space. Edward Wilson, an analyst at Nansen, believes that Trump’s presidency could pave the way for the approval of the first staked Ethereum Exchange-Traded Funds.
“As the regulatory environment is likely to be pro-crypto, we may even see a staked ETH ETF approved early in this new administration, which would fully leverage the benefits of ETH as an asset. If this occurs, then ETH will become an exciting asset to watch. To put it differently, ETH is cool again,” Wilson stated. A staked Ether ETF could help elevate Ethereum’s price above its all-time high of $4,800, recorded almost three years ago.
Ethereum Exchange-Traded Funds were approved by the United States Securities and Exchange Commission earlier this year, following the successful approval of Bitcoin ETFs in January. Exchange-traded funds allow institutional investors to benefit from the price movements of Bitcoin or Ethereum without actually owning the assets. These ETF products are usually offered by asset managers looking to provide their clients with exposure to cryptocurrency investment opportunities.