Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has demonstrated an extraordinary performance following the recent US elections on November 5. With a stunning leap of 21.9% over the last three days, this surge has rekindled a bullish sentiment among investors for both the cryptocurrency itself and Ethereum-based investment products.
Ethereum ETFs Witness a Notable Comeback
As Ethereum’s price experiences an upswing, spot Ethereum exchange-traded funds (ETFs) have marked their most successful day in 13 weeks. These ETFs, launched in late July, had faced a tumultuous journey over the past few months. Initially, the crypto investment products exceeded expectations during their first two days post-launch. However, the subsequent weeks saw significant outflows during the third quarter’s market retrace.
During an early August correction, Ethereum-based products experienced their second-largest single-day inflow since inception. As the market rebounded from the downturn, Ethereum ETFs achieved $98.4 million in positive net flows, primarily driven by Blackrock’s ETHA. Despite these promising figures, the crypto products struggled to consistently break the $20 million mark, achieving inflows above this threshold only five times over three months. The current rally in ETH has seemingly restored confidence in the cryptocurrency and its related investment products, as evidenced by its impressive performance over the past few days.
Ethereum ETFs’ Stellar Performance
Ethereum ETFs achieved their best-performing day in six weeks, amassing $52.3 million in inflows on Wednesday. The following day saw the investment products record their third-largest single-day performance since their launch, with inflows reaching $79.7 million—a high not seen since August 6.
Ethereum’s Ascension: Could $3,500 Be on the Horizon?
Over the past seven days, Ethereum has recorded a substantial 16.6% increase, climbing from the $2,500 support zone to the $2,900 mark—a level it lost in mid-Q3. The “King of Altcoins” lost its grip on the $3,000 support zone in early August, undergoing a 23% correction during the market’s retracement period. For the last few months, the cryptocurrency has faced resistance at the crucial $2,800 level, only to be rejected each time.
However, the recent victory of Republican candidate Donald Trump in the presidential elections has instilled renewed momentum in the entire crypto market, propelling it toward the next phase of the bull run. In the past three days, Bitcoin (BTC), the flagship cryptocurrency, has entered price discovery mode, setting a new all-time high of $76,800 on Thursday. Concurrently, Ethereum’s price rallied from the $2,400 range, nearing the much-anticipated $3,000 resistance level.
Ethereum’s Breakout Potential
Crypto analyst Rekt Capital highlighted that Ethereum’s recent performance closed its GME gap, which formed in early August. This gap saw ETH’s price drop from $3,000 to $2,700 before crashing on August 5. According to the analyst, a weekly close above the current levels, followed by a retest, would confirm ETH’s breakout from the three-month range. Moreover, reclaiming the $2,900 resistance could set the stage for ETH to advance to $3,500 over time, potentially driving Ethereum’s rally toward its yearly high above $4,000.
At the time of writing, Ethereum is trading at $2,925, marking a 4.2% increase in the last 24 hours.
