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Author: Nancy Lubale, CoinTelegraph; Compiled by: Tao Zhu, Bitchain Vision
U.S. interest in a crypto-friendly business environment has increased, causing Ethereum’s price to rise more than 37% in the past seven days, reaching its highest since July 24, as Donald Trump wins the presidential electionlevel.
ETH/USD daily chart.Source: TradingView
At the time of writing, Ethereum is trading at $3,392, with increasing demand through spot Ethereum ETFs and on-chain indicators suggesting that the uptrend of altcoins is still intact.
Ethereum open contract hits record high
ETH long positions in the futures market have increased in the past seven days, ahead of the rise in Ethereum.Data from on-chain market intelligence firm CryptoQuant shows that Ethereum’s total open contract volume in the derivatives market increased from 9.8 million ETH on November 5 to an all-time high of 13.2 million ETH on November 11.
ETH open contracts on all exchanges.Source: CryptoQuant
“ETH finally hit an all-time high on futures OI, which shows that interest in altcoin boss is finally back,” trader Alan said in an article on X, adding that the market can never ignore ETH.
Trader Olek believes thatEther’s continued rise in OI indicates “increasing liquidity and market participation”.
Olek added:
“Ethereum is sending a signal of recovery, and its increased activity indicates that the market is ready to move.”
ETH demand increases
CryptoQuant data shows that as on-chain activity increases, the demand for ETH seems to gain attention again, as the number of daily active addresses (DAAs) on the Ethereum blockchain is proof of this.The following figure shows that Ethereum’s DAA increased from 306,751 on November 5 to 388,350 at the time of writing on November 12.That number has increased by 26% after Donald Trump won the 2024 U.S. presidential election last week.
Number of active addresses on Ethereum.Source: CryptoQuant
Therefore, the on-chain data shows thatThe increasing interaction between users and Tier 1 blockchains indicates an increase in Ethereum transaction volume.
According to DappRadar, the active addresses of Ethereum DApps have increased by 8% in the past seven days.Overall, these data are encouraging considering that other DeFi metrics such as total value locked, number of transactions, and NFT transaction volume have also increased significantly over the past week.
Top Layer 1 Blockchain; 7-day DApp activity.Source: DappRadar
Ethereum’s network growth needs to continue, which will generate the demand needed to drive ETH to $4,000.
US spot Ethereum ETF inflows reached US$295 million
After Trump’s victory, Ethereum began to recover, and the spot ETH ETF funds flowed to positive, with a net outflow of $73 million in the last two days before the November 5 election.
According to SoSoValue, the investment products recorded the largest single-day inflows since their launch on Nov. 11, with inflows exceeding $295 million.
Spot flow of Ethereum ETFs.Source: SoSoValue
Fidelity Ethereum Fund (FETH) led the way with a record $115.5 million inflow, while BlackRock’s iShares Ethereum Trust ETF (ETHA) ranked second with $101 million inflows.
Grayscale Ethereum Mini Trust ETF (ETH) ranked third with $63.3 million inflows, while Bitwise Ethereum ETF (ETHW) recorded $15.6 million.All other US spot Ethereum ETFs have zero inflows.
Additional data from CoinShares shows that inflows of Ethereum investment products totaled $157 million in the week ended November 8, bringing inflows to $915 million this year and $12 billion in asset management.
CoinShares said in the accompanying comment that this is “the largest inflow since the launch of the ETF in July this year, marking a significant improvement in market sentiment.”
The latest inflows continues a significant trend that began a week ago, indicating that institutional demand for Ethereum investment products continues to increase, which may drive its prices to a high above $4,000 on March 12.
