3 reasons why Ethereum price is headed toward $4K

 

Increasing excitement over a crypto-friendly business environment in the United States following Donald Trump’s presidential election win caused the price of Ether (ETH) to jump over 37% over the last seven days to trade at highs not seen since July 24.

ETH/USD daily chart. Source: TradingView

At the time of writing, Ether is trading at $3,392 with increasing demand through spot Ethereum ETFs, and onchain metrics suggest that the altcoins uptrend remains intact.

Ether open interest hits all-time highs

Ether’s rally over the last seven days was preceded by an increase in open long ETH positions in the futures market. Data from onchain market intelligence firm CryptoQuant shows Ethereum’s total open interest in the derivatives market increased from 9.8 million ETH on Nov. 5 to an all-time high of 13.2 million ETH on Nov. 11.

Open Interest of ETH on all exchanges. Source: CryptoQuant

“ETH finally prints us an ATH on futures OI, which shows that interest has finally returned to the boss of altcoins,” said trader Alan in a post on X, adding that the market can never ignore ETH.

Fellow trader Olek opined that Ether’s rising OI signals “rising liquidity and market engagement.”

Olek added:

“Ethereum, in particular, is flashing signals of a comeback, with heightened activity indicating the market is primed for movement.”

ETH demand increases

CryptoQuant data reveals that increased demand for ETH seems to have gained traction again amid increased onchain activity, as shown by the number of daily active addresses (DAA) on the Ethereum blockchain. The chart below shows an increase in Ethereum’s DAA from 306,751 on Nov. 5 to 388,350 at the time of writing on Nov. 12. This represents a 26% increase, coming after Donald Trump’s win in last week’s 2024 US presidential election.

Number of active addresses on Ethereum. Source: CryptoQuant

Thus, onchain data shows that users are interacting more with the layer-1 blockchain, suggesting an increase in Ether token transactions.

According to DappRadar data, Ethereum DApps’ active addresses have increased by 8% over the past seven days. Overall, the data is…

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