Originally published on: November 28, 2024
The demand for leveraged Ether-based trading products has surged by over 160% since Donald Trump’s victory, hinting at a potential breakthrough for Ethereum’s price to surpass the $4,000 mark.
Investors are increasingly turning to leveraged Ether positions, allowing them to borrow funds temporarily to amplify their trading capabilities.
The VolatilityShares 2x Ether exchange-traded fund (ETF) has seen a remarkable 160% increase in demand since November 5, as reported by Vetle Lunde, head of research at K33 Research. This surge in leverage demand coincided with Trump’s win and subsequent boost in investor interest in risk assets like cryptocurrencies.
Although Ethereum has trailed behind Bitcoin in price, recent setbacks have paved the way for a potential comeback. Analysts believe that Ether could hit $20,000 at the peak of the 2025 bull cycle, fueled by evolving technical chart patterns.
Amidst positive Ether ETF flows and spot buying pressure, experts project a continued upward momentum for Ether in the coming weeks. Ryan Lee, chief analyst at Bitget Research, anticipates a breakthrough past the $4,000 psychological threshold, echoing sentiments shared by trader Wolf in a recent analysis.
Additionally, the record inflow of stablecoins to exchanges in November may further propel Ether’s price rally, offering a favorable outlook for the cryptocurrency in the near future.
As Bitcoin hovers below the $100,000 mark, some analysts predict a potential 30% correction before breaching six figures. This could serve as a catalyst for Ether’s price surge, as suggested by renowned crypto analyst Rekt Capital.
With Ether ETF inflows showing positive signs and net inflows exceeding $90 million for the fourth consecutive day on November 27, the stage is set for Ethereum’s price rally to continue its upward trajectory.
Don’t miss out on Ethereum’s resurgence – stay informed with the latest DeFi developments and financial opportunities by subscribing to the Finance Redefined newsletter today!