Ethereum Surges Past $3,300 Amid Record ETF Inflows and Trump Victory

Ethereum (ETH) has demonstrated remarkable strength in recent trading sessions, surging past the $3,300 mark for the first time since July 2024, as the cryptocurrency market experiences a broader rally following Donald Trump’s presidential election victory. The second-largest cryptocurrency by market capitalization has gained approximately 30% over the past week, showcasing strong institutional interest and technical momentum.

Ethereum’s surge comes amid a broader cryptocurrency market rally, with Bitcoin setting new all-time highs above $89,000. The crypto market’s positive momentum has been attributed to Trump’s election victory, with the former president’s pro-cryptocurrency stance potentially influencing investor sentiment. Total assets under management across crypto investment products have reached a new record of $116 billion.

Ethereum ETFs See Record-Breaking Institutional Interest

Ethereum ETFs recorded unprecedented weekly inflows of $154.7 million, signaling growing institutional confidence in the asset. This surge in institutional interest coincides with futures open interest reaching an all-time high of $17.93 billion, suggesting sustained bullish momentum in the derivatives market.

The cryptocurrency has maintained its upward trajectory despite experiencing over $102.89 million in futures liquidations within the past 24 hours, with long positions accounting for $58.18 million and short positions for $44.71 million.

Other Fundamental Developments

Adding to the bullish sentiment, Ethereum developer Justin Drake has announced plans to unveil a new consensus layer proposal at the upcoming Devcon conference. This development could potentially enhance Ethereum’s scalability and efficiency, though the framework is still in its early stages.

Supply Dynamics

An interesting development in Ethereum’s tokenomics reveals that the network has been in an inflationary state since mid-April, with an increase of approximately 350,000 ETH over six months. The rate of ETH destruction has shown a decreasing trend since March, with a brief uptick during the memecoin hype in August.

ETH/USD Technical Analysis

Bullish Indicators

• ETH has broken above a major bearish trend line near $2,680 on the daily chart
• Price action shows sustained trading above both the 100-day and 200-day simple moving averages
• Successfully cleared the 50% Fibonacci retracement level from the $3,560 swing high to $2,078 low

Key Resistance Levels

• Immediate resistance: $3,350
• Critical resistance zone: $3,420-$3,500
• Major target: $3,732

Support Structure

• Primary support: $3,000
• Secondary support: $2,950 (coinciding with 200-day SMA)
• Critical support: $2,817 (previously held for four months)

Ethereum Price Outlook

While Ethereum shows strong bullish momentum, the RSI indicates overbought conditions, suggesting a potential short-term correction. However, the combination of institutional inflows, technical breakouts, and positive market sentiment could support further upside movement.

For the bullish case to remain intact, ETH needs to maintain support above $2,817 and successfully break through the $3,350 resistance level. A sustained break above this level could pave the way for a test of the $3,732 target and potentially a new all-time high.