Why Is Ethereum Going Up? Technical and Fundamental Price Analysis

Ethereum (ETH), the second-largest cryptocurrency after Bitcoin, has experienced significant gains lately, even as other digital assets retreat from the recent market rally. CoinaMarketCap's data shows that ETH is currently trading at $3,635, up 5% and 10% in the past day and week, respectively.

This trend, coinciding with Donald Trump's victory in the US presidential election, has highlighted a growing appetite for risk assets and Ethereum's potential to break key resistance levels. Amid the rise, the market is watching the next important price level of $4,000 with the current bullish technical indicators and strong fundamentals.

Among the factors boosting ETH is leveraged ETF products, which have reportedly experienced a substantial rise in demand since early November. The demand for VolatilityShares 2x Ether ETF rose 160% since November 5, Cointelegraph reported.

ETF Boom and US Election Aftermath

In the three weeks since the election, investor confidence in risk assets like Ethereum has surged, fueled in part by expectations of a more favorable regulatory environment. Although Bitcoin led the surge with new all-time high prices, Ethereum's price has been steadily climbing, positioning it as a strong-performing cryptocurrency in the coming months.

Ethereum moved from a low of $3,260 on Tuesday to a high of $3,685 on Thursday, representing a 13% increase in just 2 days. ETH's gains are more substantial on the monthly chart. The token has surged 37%, with technical indicators like the Relative Strength Index (RSI) and moving averages suggesting strong bullish momentum.

This optimism is further fueled by the network's dominant role in decentralized finance (DeFi), where it commands over half the total value locked across all platforms. Data from DefiLlama shows that Ether has nearly $70 billion in TLV, although slightly lower from 2021's more than $100 billion.

Ethereum's fundamentals remain robust, with rising on-chain activity, new wallet creation, and increased revenue. Layer-2 scaling solutions also attract developers and users, enhancing the network's scalability and competitiveness.

Bitcoin Factor

Bitcoin's struggle to break past the $100,000 mark could inadvertently benefit Ethereum. Analysts speculate that Bitcoin's range-bound trading may divert investor attention and funds toward Ethereum, pushing its price higher.

Additionally, Ethereum ETFs have had consistent inflows, with $90 million recently added, according to Farside Investors data. Ethereum remains the backbone of the DeFi ecosystem.

Additionally, Lido, Aave, and EigenLayer collectively hold a significant share of this value. Stablecoin activity on Ethereum has also surpassed Tron, with $60.3 billion in USDT now hosted on the Ethereum network, Coindesk reported.

The broader market sentiment around Ethereum has also benefited from Trump's pro-crypto campaign promises. His administration has signaled a reduction in regulatory hurdles, sparking hopes of a DeFi resurgence in the U.S.