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Analysts see that ethereum” target=”_blank” rel=”nofollow”>ethereum has the potential to hit a new all-time high in December after making its first breakout in three months.
Its growth can be attributed to the growing bullish sentiment about cryptocurrencies driven by the results of the recently concluded national elections.
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Ether breaks the $3,000 barrier
Data has shown that ethereum saw a huge price increase, a growth that analysts say could be the result of Donald Trump's triumphant victory in the American elections.
Analysts said that the second-largest cryptocurrency in terms of market capitalization was able to surpass the “critical” level of $2,000, reaching a high of $3,179 on Sunday midday.
ethereum's price rally is seen as an indicator that after a period of stagnation, the digital currency will gain momentum and be on the road to recovery, which is good news for eth investors.
Many analysts suggested the growth has something to do with the incoming Trump administration. During the campaign, Trump has already hinted that he is more inclined to have more favorable regulations for cryptocurrencies. Therefore, his victory indicated great optimism about the future of cryptocurrencies under his leadership.
ethereum is among the digital currencies riding on this optimism, resulting in a 20% price surge last week.
Analysts also note that another major contributor to the bullish momentum is the significant rise in the spot Ether price. eth/” target=”_blank” rel=”nofollow”>ETF inflows. On Nov. 8, data showed inflows hit a weekly high of $85.9 million, an indicator that investors are more confident in Ether's long-term potential.
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Ether market cap currently at $385 billion. Chart: TradingView.com
It is possible to reach an all-time high
Market commentators said many indicators showed that a new all-time high for ethereum could be just around the corner, saying it could hit $3,366 any time soon. They added that eth increased by 8% last Thursday.
Analysts predicted that the cryptocurrency could hit a new all-time high in December, driven by growing demand for the top altcoin. One of these growth indicators is that of currency. ethereum-price-forecast-eth-eyes-3-366-as-open-interest-growth-could-fuel-quest-for-new-all-time-high-202411071820″ target=”_blank” rel=”nofollow”>open interest which is also increasing.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#ethereum twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$eth At $3,000 today is just the beginning! https://t.co/gpAfqbe2v5
—Ali (@ali_charts) twitter.com/ali_charts/status/1855147450572369936?ref_src=twsrc%5Etfw” rel=”nofollow”>November 9, 2024
Reports illustrated that eth futures open interest (OI) saw a massive increase. It rose about 20% to $16.18 billion from $13.05 billion in the past two days.
Analysts explained that OI refers to the total number of outstanding contracts in a derivatives market. They added that if the OI rose along with the prices, it meant that new funds were entering the market to fuel an uptrend.
If ethereum's OI continues to grow, it could result in a massive price surge, propelling the digital currency to reach a new record before the year ends.
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The $10,000 projection
Analyst Ali Martinez predicted that there is a possibility of ethereum reaching the $10,000 mark, saying that breaking through the $3,000 level is just the beginning of the upward price movement.
Martinez stated that eth is on the right trajectory to reach the $10,000 level, comparing the crypto to the S&P 500.
Geoffrey Kendrick of Standard Chartered agrees with the prediction and says that eth could reach that level soon.
Kendrick explained that the anticipation of clearer crypto regulations from the new administration and what is perceived as a crypto-friendly government could fuel this massive growth.
OneSafe Featured Image, TradingView Chart
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