Following Donald Trump’s reelection as U.S. president, analysts forecast a strong rally for Ethereum (ETH) above $3,200, driven by increased risk appetite in the crypto market.
Bitfinex analysts predict ETH will break its long-term range where significant accumulation has been taking place, setting a price target of $3,200 for the coming months. According to him, Ethereum will rally once Bitcoin’s market cap dominance hits 60%. As of Nov. 8, Bitcoin’s dominance stood at 60.4%, indicating Ethereum may be poised for a breakout.
Positive inflows into spot Ether ETFs have been recorded post-election, with $52.3 million in net inflows on Nov. 6 and another $79.7 million on Nov. 7, according to data from Farside Investors. Rising investor confidence after Trump’s victory has contributed to these ETF gains, suggesting continued bullish momentum for ETH.
Market activity around Ether has intensified, with open interest reaching $1.3 million, up from $800,000 in August, as Bitfinex analysts note a rise in short positions. This uptick could lead to upward pressure on prices.
Further optimism surrounds Ether-based ETFs, as Nansen analyst Edward Wilson suggests that a Trump administration may approve the first staked Ether ETF, boosting Ether’s appeal and potentially driving its price past its prior peak of $4,800 from November 2021.
With more Ether-based ETFs potentially on the horizon, analysts see Trump’s term fostering a pro-crypto environment conducive to Ether’s growth.
Also Read: BlackRock Bitcoin ETF Hits Record $4.1B in Trading Volume After Trump’s Win
