Is it finally Ethereum’s time to shine?
Cryptocurrency markets have recovered after a spate of liquidations this week, but few have recovered as much as Ethereum.
According to CoinGecko, Bitcoin is up 2.5% over the past day, while Ethereum is up 6%. One analyst currently says there is a good chance of a new all-time high.
“The cogs and bolts are in place,” Nexo analyst Ilya Karchev told DL News. “Ethereum could surpass $5,000 as early as early 2025.”
The latest crypto rally, sparked in part by Donald Trump's US election victory, saw several cryptocurrencies hit new all-time highs, including Bitcoin, Solana, and even XRP.
Bitcoin has risen 62% since Trump won a landslide victory in last month's election. Solana and XRP rose 59% and 430%, respectively.
Ethereum has risen 79% during this period, but has yet to reach its 2021 all-time high of $4,800.
great ether rotation
Carlos Guzman, an analyst at market maker GSR, says Ethereum has an advantage.
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“ETH has a huge advantage in that it is the only token other than BTC that has a US ETF,” he told DL News.
“As traditional investors invest more in cryptocurrencies, they will look to ETH as a natural alternative.”
BlackRock and Fidelity, the largest providers of spot Ethereum exchange-traded funds, are already preparing for that rotation.
Since December 8, the two companies have acquired more than $500 million in Ethereum, according to Arkham Intelligence.
US monetary policy also emphasizes risk-on assets like cryptocurrencies.
Market players are anticipating the next Federal Reserve meeting on Dec. 18 after new inflation data on Dec. 11 showed consumer prices were still rising in November. We estimate that there is a 96% probability that interest rates will be cut by a quarter.
Cryptocurrency investors are already paying attention.
The number of outstanding Ethereum options contracts (known as open interest) on the Chicago Mercantile Exchange has hit a new record. Karchev said this is a sign of enthusiasm for cryptocurrencies.
“Solid liquidity, optimism regarding upcoming regulatory developments, and capital turnover within the crypto market further support ETH price momentum,” Karchev said.
Liam Kelly is a reporter for DL News based in Berlin. Any tips? Email liam@dlnews.com.
