ETH Back in the Spotlight

Ethereum has been a little out of the spotlight this year. Given that the second largest crypto coin by market cap was slower to advance over Q3 when BTC was enjoying rampant gains, focus naturally move away.  Alongside the Bitcoin rally, an accompanying surge in altcoins and meme-coins continued this dynamic through Trump’s election success and the continued rally we saw in BTC.

Bullish Outlook

However, ETH has started to pick up steam in recent weeks and yesterday was seen testing the 2024 highs. With the broader bull outlook for the crypto market in coming months, and ETH specific factors, there are plenty of reasons to think ETH is on the cusp of a breakout to fresh highs before year end.

Institutional Demand

The launch of ETH ETFs this year has seen increasing institutional demand for ETH. On the back of Trump’s elections, inflows have been growing steadily, helped by the rise in Bitcoin and the broader crypto market. More recently, the launch of ETH ETF options has seen further institutional demand with put/call skews reflecting a broadly bullish outlook for ETH.

Near-Term View

Looking ahead, while some year-end volatility is to be expected, the crypto market is widely pegged to advance over Trump’s early days in office again next year. Institutional demand for BTC and ETH through ETFs and options is unlikely to weaken. Indeed, with Trump expected to relax regulatory conditions and improve access to crypto markets, ETH looks poised for a strong start to next year.

Technical Views

ETH

The rally in ETH has stalled for now into the 4,150.5 2024 highs. However, with the subsequent rebound lower finding strong support into the 3,582.5 level and a retest of the broken bear trend line, focus remains on a fresh push higher. 4,403.5 sits as the next bull target on a push into fresh highs.