Ether (ETH) price is set for more upward momentum based on growing investor interest and expectations of more positive crypto regulations leading into 2025, which could set it up for a rally above $4,000.
Ether has outperformed Bitcoin (BTC) in open interest, with over $8.9 billion worth of open contracts, compared to Bitcoin’s $6.7 billion.
ETH vs BTC open interest. Source: Block Scholes x Bybit Analytics
The current decline in Bitcoin open interest suggests that it is a result of “considered repositioning,” not mass liquidations, according to a Nov. 28 report by Block Scholes and Bybit Analytics.
This dynamic may put Ether on track to a rally above $4,000 until Jan. 20, when President-elect Donald Trump will take office, according to a Bybit spokesperson, who told Cointelegraph:
“Bybit analysts see $4,000 on the horizon for ETH before Jan. 20.”
ETH/USD, 1-year chart. Source: Cointelegraph
Investor optimism around Ether’s price potential has been growing since Nov. 21, when the Securities and Exchange Commission (SEC) Chair Gary Gensler announced his departure from the regulatory agency, effecting Jan. 20, shortly before Trump takes office.
Ether price to $4k as ETH outperforms BTC yield
While Ether has underperformed Bitcoin’s price action over the past year, it’s starting to catch up in the short term. Ether outperformed Bitcoin over the past month, as Ether’s price rose over 34%, while Bitcoin rose over 31%.
BTCÐ, 1-month chart. Source: Cointelegraph
In another optimistic price signal, Ether has outperformed BTC in terms of futures yield, showing a “strongly inverted implied-yield curve,” according to the report, which added:
“Futures with an expiration of just 1 week are trading nearly 25% above spot at an annualized rate. The act of capturing the “basis” of futures prices to spot price by institutions, whereby a futures contract is sold to buy spot, has previously been floated as a driver of BTC’s strong spot ETF inflows.”
The above finding could indicate more incoming institutional inflows into the US spot Ether exchange-traded funds (ETFs), which could significantly boost Ether’s price.
Ether ETF Flow (USD, million). Source: Farside Investors
The ETH ETFs are currently on a four-day winning streak after amassing over $90 million worth of Ether on Nov. 27, Farside Investors data shows.
Investor demand for leveraged Ether ETFs rose over 160% since Trump’s victory in another bullish signal for the world’s second-largest cryptocurrency.
X posts related to ETH. Source: Kate Young Ju/ Ki Young Ju
Showcasing the growing interest around the world’s second cryptocurrency, X posts related to Ether have increased by over 282% in the three days leading up to Nov. 28, to over 1.1 million, shared CryptoQuant founder Ki Young Yu, via his altcoin analysis account.
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