Originally published on: November 08, 2024
Ether(ETH) has seen a remarkable three-day surge, marking its best performance of 2024 with a 21% increase following the announcement of President-elect Donald Trump’s victory in the US presidential election. This rally propelled the altcoin above the $2,800 resistance level, shattering a consolidation range that had persisted for 96 days.
The recent price action has triggered excitement in the crypto community, with Ether flashing a strong buy signal based on a historical setup from 2023. In 2023, Ethereum experienced a downtrend in the second and fourth quarters, followed by an accumulation phase in the third quarter and early fourth quarter. After breaking out of the accumulation range and surpassing the descending resistance trendline, ETH signaled a reversal in trend.
The current bullish setup mirrors the one from 2023, as ETH broke above the descending trendline and closed daily above the 50, 100, and 200-day EMA levels. If historical trends continue to repeat, Ethereum could potentially reach a price range between $6,000 to $6,500 by the first quarter of 2025.
While institutions have been accumulating Bitcoin aggressively, Ethereum had seen less interest. However, the recent surge in ETH price has reignited institutional investors’ curiosity, as Ethereum ETF flows showed a positive net flow of $132 million between November 6 and November 7.
Venture capitalist Henrique Centieiro expressed his belief that Ethereum is on the brink of entering a “scarcity mode,” attributing this to a combination of supply constraints and increasing demand that could trigger a substantial rally for the altcoin. With over 42.6% of ETH locked in staking contracts and exchange reserves hitting record lows in 2024, investors are poised to reap benefits from Ether in the long run.
It’s important to note that this article does not serve as investment advice. Readers are advised to conduct their own research before making any investment decisions.
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