The price of ether (ETH), the Ethereum cryptocurrency, is trading above USD 3,180, after a weekly increase of 28% that raised its value from $2,700 7 days ago.
This increase intensified during Sunday, November 10, when ETH reached $3,250, marking a peak not seen in the last six months, according to data from TradingView.
The key driver of ETH’s recent rally is record inflows into Ethereum exchange-traded funds (ETFs). Last week, these funds recorded more than USD 154 million in entriessetting an all-time high, according to SosoValue.
Specifically, Blackrock’s ETHA ETF received $94.4 million net, while Fidelity’s FETH ETF recorded $42.7 million in net inflows, the same source indicates.
On Friday, November 5, ETH ETFs They saw an entry of more than 85 million dollarsmarking the third largest inflow of capital since its launch in July this year. For context, the largest inflow was recorded on July 22 with $106 million, followed by $98 million on August 5.
Ethereum ETFs directly influence the price of the cryptocurrency due to the mechanics of purchasing and holding ETH by the managers of these funds. By acquiring ETH to back the ETF shares, the amount of ether available on the market is reduced, which, due to the law of supply and demand, increases its price.
This effect not only impacts ETH, but also has repercussions on the cryptocurrency ecosystem, especially altcoins, as an increase in trust and investment in ETH It tends to expand to other smaller capitalization cryptocurrencies.
“Trump Effect”
On the other hand, the rise in the price of ETH is also largely influenced by Donald Trump’s recent election victory in the United States.
Trump’s election has triggered a rebound in the price of bitcoin (BTC) and, due to the drag effect, It has also boosted other cryptocurrencies on the market, as is the case of ether.
Bitcoin has broken several all-time records in the last week, reaching values close to $85,000 at the time of this publication.
Analysts at banks such as Standard Chartered and Bernstein had predicted this behavior for BTC, suggesting that, if Trump won the presidency, BTC could surpass $125,000 before the end of 2024, as CriptoNoticias has reported.
For now, everything seems to indicate that BTC is heading towards 90,000according to Bernstein’s estimates, who also sees bitcoin costing more than $200,000 next year.
This article was created using artificial intelligence and edited by a human Editor.