Ethereum is rushing to $4,000, three reasons revealed
Recently, the price and network of Ethereum are quite good, and it looks like it is going to rush to $4,000. Let's talk about the three reasons behind it.
First, after Trump was elected president, the United States became more and more friendly to cryptocurrencies, and the price of Ethereum also rose with it, rising 37% in just seven days, which is the highest since July 24.
Second, look at the open interest of Ethereum, which is also a record high. In the futures market, more and more people are buying Ethereum. According to CryptoQuant data, from November 5 to 11, the open interest increased from 9.8 million ETH to 13.2 million ETH, which is a big number. Trader Alan said that the open interest of ETH futures has finally reached a new high, and everyone is interested in the big altcoin again.
Third, the demand for Ethereum is also getting stronger and stronger. As more on-chain activities increase, ETH becomes popular. According to CryptoQuant, the number of daily active addresses of Ethereum has increased by 26% from more than 300,000 on November 5 to more than 380,000 on November 12. DappRadar data also shows that the number of active addresses of Ethereum DApp has increased by 8% in the past seven days.
Other DeFi indicators, such as total value locked, number of transactions and number of NFTs, have also increased significantly.
Let's talk about the spot market. After Trump's victory, the inflow of funds into the Ethereum ETF has also turned positive. According to SoSoValue data, on November 11, the inflow exceeded US$295 million. Among them, the Fidelity Ethereum Fund (FETH) had the largest inflow, reaching US$115.5 million, and the iShares Ethereum Trust ETF (ETHA) issued by BlackRock also inflowed US$101 million.
CoinShares data also showed that as of the week of November 8, the total inflow of Ethereum investment products reached US$157 million, and the total inflow so far this year has reached US$915 million, with assets under management reaching US$12 billion. This is the largest inflow of funds since the launch of ETF in July this year. Market sentiment has obviously improved.
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