Analysts see it Ether has the potential to hit a fresh all-time high by December, after achieving its first breakout in three months.

Its growth can be attributed to the growing bullish sentiment towards cryptocurrencies, fueled by the results of the recently concluded national elections.

Ether breaks the $3,000 barrier

The data showed that Ethereum experienced a vast price escalate – a rise that analysts believe could be the result of Donald Trump’s triumphant election victory US elections.

Analysts say the second-largest cryptocurrency by market capitalization was able to breach the “critical” $2,000 level, peaking at $3,179 on Sunday noon.

The rise in Ethereum prices is seen as an indicator that after a period of stagnation, the digital currency will gain momentum and be on the road to recovery, which is good news for ETH investors.

Many analysts have suggested that the escalate has something to do with the incoming Trump administration. Trump already made it clear during the campaign that he is more willing to have more favorable regulations regarding cryptocurrencies. Therefore, his victory signaled great optimism about the future of cryptocurrencies under his leadership.

Ethereum is among the digital currencies fueled by this optimism, resulting in a 20% price surge last week.

Analysts also note that another major factor contributing to the bullish momentum is the significant escalate in the spot price of Ether ETF inflow. On November 8, data showed that inflows recorded a weekly high of $85.9 million, indicating that investors are becoming increasingly confident in Ether’s long-term potential.

Ether market cap currently at $385 billion. Chart: TradingView.com

An all-time high is possible

Market commentators said multiple indicators indicate that a fresh all-time high for Ethereum could be just around the corner, saying it could hit $3,366 any time soon. They added that ETH increased by 8% last Thursday.

Analysts predicted the cryptocurrency could hit a fresh all-time high by December, fueled by surging demand for the most popular altcoin. One of these growth indicators is the coin open interest which is also growing.

#Ethereum $ETH Today’s price of $3,000 is just the beginning! https://t.co/gpAfqbe2v5

— Ali (@ali_charts) November 9, 2024

Reports have shown that open interest in ETH futures (OI) has seen a massive escalate. It rose about 20% to $16.18 billion from $13.05 billion over the past two days.

Analysts explained that OI refers to the total number of outstanding contracts in the derivatives market. They added that if OI goes up with prices, it means that fresh funds are entering the market and fueling the upward trend.

If Ethereum’s OI continues to rise, it could result in a massive price escalate, pushing the digital coin to reach a fresh record high before the end of the year.

$10,000 projection

Analyst Ali Martinez predicted that there is a possibility that Ethereum could reach the $10,000 level, saying that breaking the $3,000 level is just the beginning of the upward price movement.

Martinez stated that ETH is on track to reach $10,000, comparing the cryptocurrency to the S&P 500.

Geoffrey Kendrick of Standard Chartered agrees with the predictions, saying that ETH could reach this level soon.

Kendrick explained that the fresh administration’s expectation of clearer cryptocurrency regulations and what is perceived as a cryptocurrency-friendly government could fuel this massive growth.

Featured image from OneSafe and sound, chart from TradingView