The native cryptocurrency of Ethereum, Ether is a hot commodity as well, after rallying towards $3,600 in early November after smashing key resistance levels. So, Why is Ethereum Pumping?
Alongside wider positivity sweeping through the crypto space, buoyed by political news and institutional flow breathing life into Ethereum bids.
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The “Trump Effect”
Ether also jumped almost 16% in the past week, to about $2,880 as of Nov. 7, and gained 10.4% just in the past 24 hours alone. The reason?
Donald Trump winning the United States Presidential Elections surprised many and changed the overall feel towards more crypto-friendly policies. A Trump campaign also promised to the crypto community that his administration would take a much different approach to regulating the fledgling digital asset sector.
What has become known as the so-called “Trump Trade” is putting wind in the sails of market optimism, and that means more very positive pressure on Ether along with all major cryptocurrency space.
As if that weren’t exciting enough, Trump apparently has a huge position in Ethereum: 495.279 ETH worth around $1.41 million.
This sizable investment from a prominent name is more than just a symbolic vote of faith, and inspires market confidence in Ethereum, as many investors reacted with bullish enthusiasm.
Some, like Ethereal Vibin, even believe that Ether could “DOUBLE EASILY” in the near future, as Trump is rumored to have a history with Ethereum and DeFi.
Institutional Endorsements Boost Confidence
The ether price rise also comes after the Michigan State Retirement System purchased Ethereum-focused ETFs.
The Michigan pension fund had 460,000 shares in the Grayscale Ethereum Fund (ETHE) worth about $10 million, and held a stake in the Grayscale Ethereum Mini Trust as of Sept. 30.
This reflects a clear bias towards Ethereum over Bitcoin — while the fund allocated $7 million in Bitcoin ETFs, they put more than twice that into Ethereum funds.
Endorsements from institutions, especially long-term ones such as pension funds tend to stabilize the market and strengthen Ethereum’s long-term value proposition.
With the large entities adopting Ether becoming a valid investment, retail and small investors gain confidence helping to push forward the market.
Technical Momentum Points to $3,600 Target
The technical outlook of Ethereum signals that the ongoing bullish structure will remain intact as the price broke out of its long-term ascending triangle pattern this week above $1,650.
Price has been more or less sideways in this formation, and last night it jumped up off of the lower trendline of the triangle to indicate stronger support.
With Ether currently above the upper trendline resistance combined with a move above the 200-day Exponential Moving Average (EMA) at $2,760, it is set to gain further in upcoming weeks.
Technical analysis suggests that a move toward $3,600 in November is easily achievable given the height of the triangle pattern.
Possible Factors of Creating Positive Momentum
A combination of positive external events and strong technicals are underpinning Ethereum price as we see things include everything from the pro-crypto signal that Trump just sent to increasing institution investment in crypto.
Political, institutional and technical drivers are converging to create a perfect storm where Ether could reach new all-time highs in the months ahead.
With Ether’s momentum higher, everyone is focused on the $3,600 target — a potential resistance area that could be a real changing point for ETH in terms of short- and long-term history.
