Why is Ethereum (ETH) price up today?
Ethereum’s native token, Ether ( ETH ), is on the road to deliver its best weekly performance since May after Donald Trump’s win in the United States Presidential Elections.
Trump fuels crypto market rally, ETH price
ETH’s price has jumped by almost 16% week-to-date to reach around $2,880 on Nov. 7, including 10.40% gains in the last 24 hours only. The cryptocurrency’s rally mirrors upside moves elsewhere in the crypto market following Trump’s electoral victory.
ETH/USD four-hour price chart. Source: TradingView
Trump has promised to introduce pro-crypto policies in the US, a step away from the Joe Biden administration’s hardline approach toward the sector. That has boosted the so-called “ Trump Trade ” sentiment, wherein cryptocurrencies like Ether are benefiting the most.
Related: Ethereum ETF inflows clock six-week high as ETH pumps 10%
Furthermore, the president-elect holds 495.279 ETH worth $1.41 million in his private wallet, according to data tracked by Arkham Intelligence. Such investments from a high-profile figure is also boosting market sentiment.
“ETH could EASILY double in a week or two,” independent market analyst EthereanVibin noted , adding:
“Especially given the fact that Trump has some decent history with Ethereum and is currently building a DeFi project on it.”
Michigan pension fund gets into Ethereum ETF
Ether's price rally further follows the revelation of the Michigan State Retirement System’s investment in Ethereum exchange-traded funds (ETFs).
As of Sep. 30, the fund reported holding 460,000 shares of the Grayscale Ethereum Fund (ETHE), valued at approximately $10 million. Additionally, the fund held 460,000 shares in Grayscale’s Ethereum Mini Trust, amounting to roughly $1.1 million.
The investment in Ethereum contrasts with the $7 million the fund allocated to spot Bitcoin ETFs earlier this year, suggesting more confidence in Ethereum's potential utility and return profile than the top cryptocurrency.
Source: X
Institutional investments tend to encourage market stability and long-term growth prospects for the underlying asset.
Ethereum is eyeing a rally above $3,600 next
Ether’s price gains today are part of its consolidation inside its prevailing ascending triangle pattern. Notably, the cryptocurrency bounced by over 18% two days after testing the triangle’s lower trendline as support.
As of Nov. 7, it was holding above the triangle’s upper trendline resistance, raising possibilities of a bullish reversal breakout in November.
The bullish outlook takes cues also from ETH’s close above its 200-day Exponential Moving Average (EMA) at around $2,760.
ETH/USD daily price chart. Source: TradingView
Based on Ethereum’s chart technicals, this breakout could push the price by as much as the triangle's height. In other words, ETH price can rise as high as $3,600 in November.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Solana Crosses the $200 Level, Reaching a 7-Month High
Bitcoin Set to Reach $100,000 Before Trump Takes Office, Analysts Predict
Aptos Crypto Braces for $100M Sell-Off in Next Major Token Unlock
These AI Crypto Projects Are Poised to Explode This November