Analysts believe that Ethereum could potentially reach a historic high in December after breaking through for the first time in three months.
Its growth can be attributed to the increasing optimism surrounding cryptocurrencies driven by the results of the recently concluded national elections.
Ethereum breaks through the $3,000 mark
Data shows that Ether's price has surged significantly, and analysts say this could be the result of Donald Trump's victory in the U.S. election.
Analysts state that the second-largest cryptocurrency by market capitalization has broken through the 'critical' $2,000 mark, peaking at $3,179 by noon on Sunday.
The rise in Ethereum's price is seen as an indicator that after a period of stagnation, cryptocurrencies will gain momentum and embark on a path of recovery, which is good news for ETH investors.
Many analysts believe that this growth is related to the incoming Trump administration. During the campaign, Trump hinted that he favored more favorable regulations for cryptocurrencies. Therefore, his victory indicates that under his leadership, the future prospects for cryptocurrencies are very optimistic.
Ethereum is one of the cryptocurrencies that has risen with this optimistic sentiment, with its price increasing by 20% over the past week.
Analysts also pointed out that another major factor driving the bullish momentum is the significant increase in inflows into the spot Ether ETFs. Data from November 8 indicates that inflows reached a new weekly high of $85.9 million, suggesting that investors are becoming increasingly confident in Ether's long-term potential.
Possibly reaching a historic high
Market commentators state that many indicators suggest Ethereum may soon reach a historic high, stating it could quickly reach $3,366. They add that ETH rose by 8% last Thursday.
Analysts predict that as demand for top altcoins continues to grow, cryptocurrencies may achieve historic highs in December. One of the growth indicators is that the token's open contracts are also increasing.
Reports show that ETH's futures open interest (OI) surged significantly, rising from $13.05 billion over the past two days to $16.18 billion, an increase of about 20%.
Analysts explain that OI refers to the total number of open contracts in the derivatives market. They add that if OI rises alongside prices, it indicates that new capital is entering the market, driving the upward trend.
If Ethereum's OI continues to grow, it could lead to a significant price increase, pushing the cryptocurrency to reach new highs before the end of the year.
$10,000 prediction
Analyst Ali Martinez predicts that Ethereum could potentially reach the $10,000 threshold, stating that breaking through the $3,000 level is just the beginning of the price increase.
Martinez claims that ETH is on the right track to reach $10,000, comparing the cryptocurrency to the S&P 500 index.
Geoffrey Kendrick of Standard Chartered agrees with this prediction and states that ETH may soon reach this level.
Kendrick explains that expectations for clearer cryptocurrency regulations from the new government and policies viewed as cryptocurrency-friendly could drive this massive growth.
