- Ethereum is trading above $3,000 and aims to break through key resistance levels to reach a new all-time high. Which could be helped by the recent 25 basis point cut in the Federal Reserve's interest rate.
- Investors are increasingly favoring Ethereum over Bitcoin, with some allocating more funds to ETH due to its potential to generate a monetary premium derived from its characteristics as a digital currency.
In the wake of Donald Trump's recent election victory, the cryptocurrency market has experienced great excitement. This ripple effect has propelled Ethereum (ETH) into a phase of ascension, surpassing the $3,000 threshold and fast approaching the $4,000 mark.
After Trump's victory, the price of bitcoin reached new all-time highs, exceeding $75,000with investors becoming bullish on the world's largest crypto asset. However, as the spotlight shines on bitcoin, analysts are urging investors to take a closer look at ETH, which could have a brighter future in the years to come.
Analyst Predicts Ethereum Outperformance Against Bitcoin.
A notable voice in this discussion is that of analyst Adriano Feria, who highlighted some notable trends, predicting that ETH's dominance could increase over BTC in the future. Bringing together more than 14 000 followersFeria went to the X platform setting a bullish and ambitious target of $10,000 for ETH. He predicts that once Ethereum hits the $10,000 mark, all the technical and marketing problems it has experienced over the past two years will magically disappear.
The crypto analyst took note of the Michigan State Retirement System (SMRS), which recently revealed that it owns $10 million worth of Ethereum and $7 million worth of Bitcoin. Additionally, Trump holds more ETH than BTC, he also made a strategic move to launch his NFT collection and DeFi project on the Ether network showing his apparent preference for ETH. While these holdings may seem like simple possessions, they collectively demonstrate Ethereum's growing influence and potential.
The analyst raised another debate on Bitcoin's capped supply versus Ethereum's uncapped supply, which overlooks a key issue: their ability to operate without increasing their monetary base. Ethereum maintained a deflationary monetary policy after the merger, ensuring stability.
Conversely, if bitcoin were to stop issuing new coins, almost all miners would become unprofitable, leading to decreased security and increased vulnerability to attacks. So although bitcoin has a supply cap, it depends on the issuance of new coins for its security. Unlike Ethereum, it successfully operates under a deflationary model that benefits its holders.
Ethereum Price Outlook
On Thursday, the Federal Reserve announced a 25 basis point interest rate cut, bringing the benchmark rate down to 4.5%. The move follows a 50 basis point cut in September, reflecting the Fed's response to current economic challenges. The recent rate cuts create a favorable backdrop for Ethereum, which has struggled to gain traction in a high interest rate environment.
From a technical perspective, Ethereum appears to be approaching key resistance levels. ETH is trading at around $3,049.77 per hour where we write these linesup 4.54% in the last 24 hours, with a daily trading volume of $32 billion.
The value of the cryptocurrency has increased by 21% over the past week. With this upward trend, the $4,000 mark seems more and more accessible. During Trump's presidency, the broader trajectory of the Ethereum market could change significantly. While Bitcoin is now expected to cross $100,000 before the end of 2024 according to analysts, such as CNF reports.
