Ether’s price is poised to experience further upward momentum as a result of increasing investor interest and expectations of positive cryptocurrency regulations leading up to 2025, potentially propelling it to rally above $4,000.
Ether (ETH) has surpassed Bitcoin (BTC) in terms of open interest, with over $8.9 billion worth of open contracts compared to Bitcoin’s $6.7 billion.
According to a report by Block Scholes and Bybit Analytics on Nov. 28, the current decrease in Bitcoin open interest is believed to be a result of strategic repositioning rather than mass liquidations.
This development could pave the way for Ether to surge above $4,000 before Jan. 20, when President-elect Donald Trump is set to assume office, as stated by a Bybit spokesperson who informed Cointelegraph:
“Bybit analysts anticipate ETH to reach $4,000 before Jan. 20.”
Investor confidence in Ether’s price potential has been on the rise since Nov. 21, following the announcement of the departure of United States Securities and Exchange Commission (SEC) Chair Gary Gensler from the regulatory agency, effective Jan. 20, just before Trump’s inauguration.
While Ether’s performance has lagged behind Bitcoin’s price movement over the past year, it is now beginning to catch up in the short term. Ether has outperformed Bitcoin in the past month, with Ether’s price increasing by over 34% compared to Bitcoin’s 31% rise.
Additionally, Ether has surpassed BTC in terms of futures yield, displaying a “strongly inverted implied-yield curve,” indicating a potential influx of institutional inflows into US spot Ether exchange-traded funds (ETFs) that could significantly boost Ether’s price.
As of Nov. 27, Ether ETFs have been on a four-day winning streak, accumulating over $90 million worth of Ether, according to Farside Investors data. Demand for leveraged Ether ETFs has surged over 160% since Trump’s victory, signaling a bullish trend for the second-largest cryptocurrency globally.
Illustrating this growing interest, the number of posts related to Ether has surged by 282% in the three days leading up to Nov. 28, reaching 1.1 million, as reported by CryptoQuant founder Ki Young Yu through his altcoin analysis account.