30s Summary
The value of Ether, Ethereum’s cryptocurrency, has surged 21% following President-elect Donald Trump’s victory, breaking past its ‘resistance’ mark of $2,800. Cryptocurrency enthusiasts suggest Ethereum could be entering a ‘bullish’ period, predicting its value could rise to between $6,000 and $6,500 by Q1 2025. Furthermore, inflows into Ethereum ETFs increased by $132 million in two days after Trump’s win. Venture capitalist Henrique Centieiro suggests Ethereum is moving into “scarcity mode,” which could further drive up prices. However, potential investors are warned of inherent risks in cryptocurrency investments.
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Ether, the cryptocurrency associated with the Ethereum network, saw a big jump in value right after President-elect Donald Trump’s victory. It climbed 21% in just three days in 2024, breaking past its ‘resistance’ mark of $2,800. This was a change from its consistent performance over the previous 96 days.
Crypto buffs are saying Ethereum could be entering a new ‘bullish’ period. This is based on a pattern in 2023 where Ethereum fell for a bit, then stabilized before eventually shooting up. When it stabilized, steadily gained value and then broke out of its range, it signalled the beginning of a ‘bull-rally’. We see the same pattern this year, with Ethereum steadily gaining value, then recently breaking past its resistance point.
In 2023, Ethereum peaked at a yearly high of $4,100, so if the same pattern holds, we could see its value rise between $6,000 and $6,500 by Q1 2025. This cyclical trend analysis is one way crypto traders try to predict price moves, and while it’s not always accurate, it provides some clues.
Meanwhile, more money is starting to flow into Ethereum investment funds, known as ETFs. After Trump’s win, Ethereum ETFs saw an inflow of $132 million in just two days. That’s a contrast to the outflow of $63.2 million just days earlier.
Venture capitalist, Henrique Centieiro, believes Ethereum is entering a “scarcity mode,” meaning there’s not enough supply to meet demand which could push the price up. A lot of Ethereum is locked up and reserves are at record lows while demand is soaring. This creates a perfect storm for a possible massive value hike in Ethereum.
However, as with any investment, there are risks. Sure, reading charts and analyzing trends might give you some insights, but you should always do your homework before throwing your money into anything. Even pros can get it wrong sometimes.