Growing investor interest and hopes for regulatory easing are setting the stage for an Ethereum rally above $4000 before Donald Trump’s inauguration. This conclusion was reached by Block Scholes and Bybit Analytics.
Analysts noted an increase in OI for perpetual contracts on the second-largest cryptocurrency by market capitalization on Bybit ($8.9 billion), surpassing the equivalent figure for bitcoin ($6.7 billion).
In their view, this is the result of “thoughtful repositioning,” rather than mass liquidations.
A shift in sentiment occurred following a statement by the current head of the SEC, Gary Gensler, about his departure by January 20, specialists indicated.
Over the past month, Ethereum has outpaced bitcoin in growth rates — 34% compared to 31%.
An additional argument supporting the aforementioned scenario is the “strongly inverted implied yield curve” of the asset.
“Futures expiring in a week are trading almost 25% above spot on an annualized basis. The act of institutions ‘capturing’ the basis is seen as a factor of strong inflow into spot Ethereum-ETFs,” the review states.
Data on inflows into products confirm this hypothesis. On November 27, they amounted to $90.1 million. The positive trend continued for the fourth consecutive day.
Previously, an analyst known as Wolf identified the formation of a “Triangle” pattern on the Ethereum chart since November 2021. In his opinion, a likely price breakout from this consolidation zone is targeting $20,000.
Matrixport has seen the prerequisites for a “DeFi renaissance” thanks to the formation of a pro-cryptocurrency administration under Donald Trump.