3 Reasons Why Ethereum’s Price Is Moving Toward $4K

Ether price and network fundamentals are gaining momentum, increasing the likelihood of a rally to $4,000.

Source: kriptokoin.com

Rising enthusiasm for a crypto-friendly business climate in the U.S. after Donald Trump’s presidential election victory has driven Ether’s price up by over 37% in the past week, reaching levels not seen since July 24. Currently, Ether is trading at $3,392, fueled by growing demand from spot Ethereum ETFs, while on-chain metrics indicate that altcoin's upward trend is holding strong.

Ether Open Interest Reaches Record Highs

Ether's rally over the past week was accompanied by a notable rise in open long positions in the futures market. Data shows Ethereum’s total open interest in derivatives surged from 9.8 million ETH on Nov. 5 to a record high of 13.2 million ETH by Nov. 11. ETH has finally given us an all-time high in futures OI, signaling renewed interest in the leader of altcoins, remarked trader Alan in a post on X, emphasizing that the market can’t overlook ETH. Another trader, Olek, noted that the increase in open interest indicates growing liquidity and market engagement.

ETH Demand Sees Significant Increase

Data shows that demand for ETH has picked up again, driven by increased on-chain activity, as reflected in the rise of daily active addresses (DAA) on the Ethereum blockchain. The number of active addresses increased from 306,751 on Nov. 5 to 388,350 on Nov. 12, marking a 26% rise. This surge follows Donald Trump’s victory in the 2024 U.S. presidential election, and it suggests that users are engaging more with the Ethereum network, potentially leading to more Ether token transactions.

Further data shows that active addresses for Ethereum DApps have risen by 8% over the past week. Overall, these trends are promising, especially when considering that other DeFi metrics, such as total value locked, transaction volumes, and NFT activity, have also spiked. For Ethereum’s network growth to continue, sustained demand will be necessary to push ETH toward the $4,000 mark.

US Spot Ether ETFs See $295 Million In Inflows

Ether's recovery following Trump’s victory led to a reversal in spot ETH ETF flows, which turned positive after experiencing net outflows of $73 million in the two days leading up to the election on Nov. 5. On Nov. 11, these investment products saw their largest inflow since their launch on July 23, with over $295 million flowing in, according to data. The Fidelity Ethereum Fund led with a record $115.5 million in inflows, followed by the BlackRock-issued iShares Ethereum Trust ETF with $101 million. The Grayscale Ethereum Mini Trust ETF ranked third with $63.3 million in inflows, while the Bitwise Ethereum ETF recorded $15.6 million. Other US spot Ether ETFs saw no inflows.

Additional data reveals that Ethereum investment products attracted $157 million in inflows during the week ending Nov. 8, bringing the year-to-date total to $915 million, with assets under management reaching $12 billion. This marks the largest inflow since the launch of these ETFs in July, signaling a significant improvement in sentiment. These trends suggest that ongoing institutional demand for Ether investment products could drive its price toward the March 12 highs above $4,000.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.