- Ethereum is currently leading the market recovery.
- While Bitcoin and XRP reach new highs, Ethereum has reached the goal.
- Analysts say this is likely to change soon.
Is it finally time for Ethereum to shine?
After a series of selloffs this week, crypto markets have rebounded – but few have bounced as high as Ethereum.
While Bitcoin is up 2.5% over the past day and Ethereum is up 6%, according to CoinGecko. An analyst now says the sky is clear for a new all-time high.
“The nuts and bolts are in place,” said Iliya Kalchev, an analyst at Nexo. DL News. “Ethereum could catapult beyond $5,000 as early as early 2025.”
The latest crypto rally – sparked in part by Donald Trump’s election victory in the United States – has seen several cryptocurrencies, including Bitcoin, Solana and even XRP, reach new all-time highs.
Since Trump won the election last month, Bitcoin is up 62%. Solana and XRP increased by 59% and 430%, respectively.
Although Ethereum is up 79% during this period, it has still not reached its 2021 all-time high of $4,800.
The great rotation of the Aether
Carlos Guzman, an analyst at market maker GSR, says Ethereum has an advantage.
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“ETH has a big advantage in that it is the only token, besides BTC, to have a US ETF,” he said. DL News.
“As traditional investors allocate more to crypto…they will view ETH as a natural alternative.”
BlackRock and Fidelity, two of the largest providers of Ethereum spot exchange-traded funds, are already preparing for this rotation.
Since December 8, both have acquired more than $500 million worth of Ethereum, according to Arkham Intelligence.
US monetary policy also favors risky assets, such as cryptocurrencies.
After new inflation data on December 11 showed that consumer prices continued to rise in November, market watchers now estimate a 96% chance of a quarter-point reduction in the next meeting of the Federal Reserve on December 18.
Crypto investors are already taking note.
The number of outstanding Ethereum options contracts, called open interest, on the Chicago Mercantile Exchange just reached a new record. This demonstrates enthusiasm for cryptocurrency, Kalchev said.
“Robust liquidity, optimism about regulatory developments, and capital turnover within the crypto market further support ETH price dynamics,” Kalchev said.
Liam Kelly is a Berlin-based journalist for DL News. Do you have any advice? Send him an email to liam@dlnews.com.
