In a surprising turn for the cryptocurrency market, Ethereum (ETH) surged 25% in its largest three-day rally of 2024, coinciding with the election of Donald Trump as the U.S. President. This sharp upswing propelled Ethereum beyond the critical resistance level of $3,050, signaling renewed investor interest and a possible market uptrend. Historically, $3,000 has been a psychological barrier for ETH, but recent buying momentum suggests increased market confidence. This rally comes as the U.S. Securities and Exchange Commission (SEC) continues deliberations on approving options for spot Ethereum ETFs, fueling optimism in crypto markets as institutional investors watch closely for regulatory shifts. During weekend trade, Ethereum was trading at $3,085 (at the time of publication of this report) after briefly trading below $3,000. However, the recovery was very quick as the price traded below $3,000 for just 15 minutes.

Ethereum Surges on Election-Driven Momentum

Major Three-Day Rally Signals Market Optimism
Ethereum recorded its highest three-day return of the year, surging 21% immediately after the U.S. presidential election results, which saw Donald Trump reelected. The rally pushed ETH past $3,050, surpassing a resistance range that had held steady for 96 days. This significant breakout hints at renewed bullish sentiment in the cryptocurrency market, particularly among Ether investors.

Key Resistance Level at $3,000 Broken

Psychological and Technical Barriers Surpassed
Previously, $3,000 was both a technical and psychological ceiling for Ethereum. By trading above this threshold, ETH has effectively cleared a critical level that had previously stifled upward movement. Sustained trading above $3,050 over the weekend suggests robust demand, and the sharp buying volume following the breach of $2,800 underscores growing confidence in Ethereum’s potential.

Market Sentiment Turns Bullish with Historical Buy Signals

Historical Setup Indicates Further Gains Possible
Ethereum has flashed a strong buy signal reminiscent of a similar bullish setup seen in 2023. This signal emerged after Ethereum broke through its accumulation range and its descending resistance trendline, marking a possible trend reversal. The bullish case was further cemented by ETH’s daily close above key moving averages, specifically the 50-day, 100-day, and 200-day EMAs, which are often viewed as signals of a sustained uptrend.

Bitcoin Stagnates as Ethereum Outperforms

BTC Faces Resistance, ETH Sees Continued Strength
While Bitcoin has struggled to break through its $77,000 resistance level, Ethereum continues to show strength, maintaining gains while BTC trades sideways. This divergence has drawn attention, particularly as institutional investors focus on Bitcoin through spot BTC ETFs, yet ETH’s recent performance is beginning to capture renewed interest among “smart money” investors.

Institutional Interest Reignited Amid Strong ETF Flows

Ethereum ETFs Attract $132 Million Inflows
Ethereum’s rally has spurred increased institutional activity, with ETF flows recording a net inflow of $132 million between November 6 and November 7. Although Bitcoin remains the primary choice for institutional spot ETFs, ETH’s recent rally has positioned it as an attractive alternative for investors seeking exposure to cryptocurrency assets.

SEC Delays Decision on Ethereum ETF Options

Approval Decision on Ethereum ETF Options Postponed
The U.S. Securities and Exchange Commission (SEC) recently announced a delay in its decision on options tied to spot Ethereum ETFs, with the new deadline set for November 11. If approved, these options would allow NYSE to list contracts for various Ethereum-focused funds, including the Bitwise Ethereum ETF and the Grayscale Ethereum Trust, among others. The approval process will also require support from the Commodity Futures Trading Commission (CFTC) and the Options Clearing Corporation (OCC).

Broader Regulatory Landscape Signals Shift in Crypto Policy

Trump’s Pro-Crypto Stance Sparks Hope for ETF Approvals
President Trump’s return to office is seen as a potential catalyst for cryptocurrency policy evolution. His pro-crypto stance has reinvigorated optimism in regulatory circles, as the SEC approved options trading on 11 Bitcoin ETFs across major exchanges, including NYSE American, Nasdaq, and Cboe. The exchanges have since petitioned for similar approvals for Ethereum ETF options, with a final decision expected to signal the SEC’s changing stance on digital assets.

Altcoin ETF Applications See a Surge in 2024

Asset Managers Expand ETF Applications Beyond Bitcoin
With institutional interest in digital assets growing, 2024 has seen a wave of ETF applications for altcoins such as Solana (SOL), XRP, and Litecoin (LTC). There has also been a push for diversified crypto index ETFs. As Ethereum’s rally highlights growing enthusiasm for non-Bitcoin assets, these applications reflect a trend toward diversified cryptocurrency investment products, awaiting regulatory clarity from the SEC.