The Price of Ethereum’s Native Asset Ether (ETH) Is Rallying Following Trump’s Victory in the United States 2024 US Presidential Election

It appears that the Republican candidate's win has revitalized the alt-coin market and ETH could be spearheading that recovery as it is posting 6.3% gains in the past 24 hours

The price of Ethereum’s native token Ether (ETH) continues to rally following Donald Trump’s victory in the 2024 United States Presidential election.

Trump’s win appears to have revitalized the altcoin market, with ETH leading the charge, posting gains of 6.3% in the past 24 hours, according to data from CoinMarketCap.

This rally could be driven by optimism among crypto investors regarding Trump’s pro-crypto stance and his promises to bring regulatory and legislative clarity to the sector.

Throughout his campaign, Trump pledged to make America the “crypto capital of the planet,” marking a significant shift from his previous views on the industry.

“ETH could EASILY double in a week or two, especially given the fact that Trump has some decent history with Ethereum and is currently building a DeFi project on it,” noted independent market analyst EthereanVibin.

Just weeks before the election, members of the Trump family, including the President-elect, heavily promoted a new decentralized finance (DeFi) project called World Liberty Financial.

Trump’s ventures in this emerging sector could indicate his support for policies that foster the adoption of blockchain technology across government and legislation that helps the industry flourish in the United States.

“Imagine the next 4 years being the complete opposite of the last few years when it comes to what DeFi projects are ‘allowed’ to do,” said Ethereum educator @sassal0x. “Fee switches, fee switches everywhere!”

Ethereum Daily Spot ETF Inflows Hit Six-Week High

Another sign of crypto investors welcoming Trump’s victory was a surge in capital inflows to the recently approved Ethereum-linked spot exchange-traded funds (ETFs) in the U.S.

Data from Coinglass showed that the net aggregate inflows to these vehicles amounted to $52.3 million — the highest single-day positive inflows in the past six weeks.

While this figure pales in comparison to the nearly $622 million that BTC spot ETFs received on that same day, it still marks a notable increase for ETH-linked products, considering that demand for the latter has been relatively weak throughout the year.

BlackRock’s iShares Ethereum Trust surprisingly reported net zero inflows for the day, with the majority of the positive flows going to the Fidelity Ethereum Fund and the Grayscale Ethereum Mini Trust.

“Institutional investments tend to bolster an asset’s market stability and long-term growth prospects,” noted Cointelegraph reporters, suggesting that these increased inflows could positively influence Ethereum’s future performance.

ETH Closes Performance Gap with BTC Over Past 30 Days

Ethereum’s performance has also improved significantly in the past month, possibly due to Trump’s increasing odds of winning the election. According to CoinMarketCap, ETH has generated gains of 15.4% in the last 30 days.

This percentage still lags behind BTC’s 20% gain during this period but closes the substantial gap in yearly performance between the two digital assets.

As of today, ETH’s price stands at around $2,810 per coin, with a year-to-date gain of 23.2%, compared to BTC's 77.3% gain on a year-to-date basis.

A key metric, the ETH/BTC ratio, which tracks the relative performance of the two assets, has been rising since November 5th, indicating that investors may be shifting funds back into the native token of the largest smart contract network in the space.

“Ethereum vs. Bitcoin has likely bottomed out,” said crypto analyst Benjamin Cowen. “If the ETH/BTC can ‘get above’ the Simple Moving Average (SMA), there is a ‘good chance’ the ratio ‘has found a bottom.'”

Pectra Upgrade to Bring Notable Improvements to Network

Despite ETH’s relatively lackluster performance since the start of the year, independent analysts and crypto enthusiasts believe the asset is currently undervalued and poised for a significant rally in the near term.

Pseudonymous crypto trader Byzantine General stated in a recent post that he sees Ether having “a very real chance of going on a monster rally now.”

“Try to fathom the unfathomable,” added crypto analyst Miles Deutscher, highlighting that ETH is “outperforming BTC and SOL” over the same 24-hour period.

Meanwhile, Dan Tapiero, founder of 10T Holdings, is even more bullish on Ethereum’s prospects, asserting that the asset is “too cheap” and will “go over” $8,000 within the next year.

This optimism is not solely driven by Trump’s victory. The network has reportedly made substantial progress on several fronts, including the upcoming Pectra upgrade, which is expected to enhance user experience and staking procedures.

As a pre-devcon treat, @ethPandaOps just launched a short-lived Pectra testnet: Mekong 🏞️

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