Analysts are expecting Ethereum, the second largest crypto asset by market capitalization to cross the $3200 mark following two bullish factors affecting the crypto asset at the moment.
Donald Trump’s election win Midweek has created a ripple effect in the crypto market leading to the surge of various crypto assets.
Bitcoin is now expected to cross $100,000 before the end of 2024 by analysts and Ethereum is not left behind in the surge.
Analysts believe Donald Trump’s election win rubbed off well on Crypto investors increasing their risk appetite.
This played a key role in the second bullish factor for the Ethereum Rally which is the positive inflows into the spot Ethereum Exchange Traded Funds (ETFs).
According to Data from Farside investors, Inflows into spot Ether exchange-traded funds (ETFs) turned positive after the US election results, with the ETFs seeing $52.3 million in net positive inflows on Nov. 6 and $79.7 million on Nov. 7.
These inflows reflect the increased risk appetite of institutional investors which stems from the sentiment that a Donald Trump Victory is good for the Crypto market.
Bitfinex analysts stressed that Trump’s victory could help Ethereum push past $3200 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, and as soon as Bitcoin’s market cap ratio against the total market cap tops — our expectation is that it will be around 60% — we can expect Ether to have a run.” Bitfinex analysts argued
More analysts are increasingly growing confident about the post-election surge of crypto assets. Bitget Research’s chief analyst, Ryan Lee, expects Bitcoin to breach $100,000 before the end of 2024.
The case for a staked Ether ETF
Besides, the post-election rally of Bitcoin and other crypto assets like Ethereum. Several analysts believe the Trump administration would be favorable for more innovation in the crypto space.
Edward Wilson, an analyst at Nansen believes Trump’s presidency can create room for the first staked Ethereum Exchange Traded Funds.
“As the regulatory environment will likely be pro-crypto, we may even see a staked ETH ETF approved early in this new administration, which will fully leverage the benefits of ETH as an asset. If this occurs, then ETH will become an exciting asset to watch. Put differently, ETH is cool again.” Wilson said.
A staked Ether ETF could help push Ethereum’s price above its all-time high of $4,800 recorded almost three years ago.
What to Know
- Ethereum Exchange Traded funds were approved by the United States Securities and Exchange Commission Mid-year after a successful outing of Bitcoin ETFs that were approved in January.
- Exchange-traded funds allow institutional investors to benefit from the price action of Bitcoin or Ethereum without actually owning the assets. The ETF products are usually offered by Asset Managers looking to open up their clients to the prospects of investing in cryptocurrency.