Ether’s price is expected to continue rising due to increasing investor interest and positive expectations of crypto regulations by 2025. This could potentially lead to a rally above $4,000.
In terms of open interest, Ether has outperformed Bitcoin, with over $8.9 billion worth of open contracts compared to Bitcoin’s $6.7 billion.
According to a report by Block Scholes and Bybit Analytics, the current decline in Bitcoin open interest is likely a result of “considered repositioning” rather than mass liquidations.
Based on this dynamic, a spokesperson from Bybit has stated that Ether could rally above $4,000 before January 20, when President-elect Donald Trump takes office.
Since the announcement of United States Securities and Exchange Commission (SEC) Chair Gary Gensler’s departure from the regulatory agency, investor optimism surrounding Ether’s price potential has been growing. Gensler’s departure will be effective on January 20, shortly before Trump takes office.
Although Ether has underperformed Bitcoin in terms of price action over the past year, it has started to catch up in the short term. In the past month, Ether’s price has risen over 34%, while Bitcoin has risen over 31%.
In addition, Ether has outperformed Bitcoin in terms of futures yield, showing a “strongly inverted implied-yield curve.” This indicates a potential increase in institutional inflows into US spot Ether exchange-traded funds (ETFs), which could significantly boost the price of Ether.
Furthermore, leveraged Ether ETFs have seen a rise in investor demand of over 160% since Trump’s victory, further signaling bullish sentiment towards the cryptocurrency.
To showcase the growing interest in Ether, the number of posts related to Ether has increased by 282% in the three days leading up to November 28, according to CryptoQuant founder Ki Young Yu.