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    Ether surges over 23% in a week, surpassing $3,000 following US election and Federal Reserve rate cuts

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    Ether (ETH), Ethereum’s token, has surged 23.39% in value within a week, hitting over $3,000, its highest since August 2. The rise follows the U.S. election and Federal Reserve’s rate cuts. A belief in fewer regulatory obstacles for digital currencies under Trump’s rule, and Ether becoming more attractive as an “internet bond” due to Fed’s rate cuts, are cited as reasons for surge. Ether options’ pricing on Deribit imply a continuing rise. More money is also flowing into Ether ETFs with the BlackRock’s iShares Ethereum ETF recording nearly $60 million inflow.

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    Ethereum’s native token, Ether (ETH), is having a good time thanks to a wave of positive news. ETH saw a jump in value after Donald Trump won the U.S. election and the Federal Reserve cut rates recently.

    ETH is the world’s second-largest cryptocurrency by market value, and it went beyond $3,000 this Saturday, hitting its highest since August 2. In the last week, its value has increased by 23.39%, the most significant rise since May. The overall crypto market capitalization also went up by 13.5% to $2.5 trillion.

    There are a couple of explanations for ETH’s impressive surge. First, there’s the belief that under the Trump administration, there’ll be fewer regulatory obstacles for digital currencies, which could boost growth in decentralized finance (DeFi), a sector that Ethereum pretty much rules.

    Another vital factor is the Fed’s cycle of rate cuts, which makes Ether more attractive as an “internet bond,” giving a fixed return through staking rewards. The Fed did cut the benchmark borrowing cost by 25 basis points, which made the so-called Fed-ether yield difference favor ETH.

    Judging by how Ether options are priced on Deribit right now, this ETH rally is expected to go on. There’s a positive call-put skew across time frames, meaning that call options that give buyers a lot of upside potential are relatively pricey.

    There’s also been more money pouring into Ether’s spot exchange-traded funds (ETFs). For instance, on Friday, BlackRock’s iShares Ethereum Trust ETF (ETHA) saw an inflow of almost $60 million – the highest in three months.

    But let’s not get too excited. Despite these impressive gains, ETH is still a long way off its 2021 peak of $4,868, especially when you consider that Bitcoin is currently trading at record highs above $75,000.

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