Ethereum Price Forecast: Michigan Pensions drives ETH ETFs inflows to 40-day Peak after Trump win

Ethereum Price Analysis:

Ethereum price entered a 5.8% rally, breaching the $2,880 level in the early hours of Nov 7, while major top-ranked crypto assets retreated. On-chain data trends shows rising demand for ETH ETFs among US investors in the aftermath of Donald Trump’s victory at the polls.

Is Ethereum price on the verge of a $3,000 breakout?

Ethereum surges 5.81% while BTC retreats

Bitcoin (BTC), Dogecoin (DOGE), Ethereum and other top-ranked assets hit newly monthly peaks on Nov 6, as the global crypto market capitalization surged by $200 billion with 24-hours of Donald Trump victory at the polls.

While the likes of BTC and DOGE entered a mild correction after the Nov 6 rally, ETH price has advanced further in the early hours of Nov 7.

The ETHUSD 4-hourly chart above shows how Ethereum price opened trading at $2,720 on Nov 7. While Bitcoin price dipped 1.33% within 8-hours of trading, ETH entered a 5.81% flash rally, rising as high $2,880.

Why is Ethereum Price Going up ?

Market reports suggests that Ethereum’s 5.81% price rally on Nov 7 is linked to rising demand for ETH ETFs among US-based investors, adding more bullish momentum after Trump’s win.

On Nov 4, the State of Michigan pension fund became the first US state pension fund to invest in an Ethereum (ETH) ETF. According to an update from Matthew Sigel, Head of digital assets research at VanEck, the State of Michigan is now among the top five holders of both Grayscale Ethereum Trust Fund ($ETHE) and Grayscale’s Ethereum Mini Trust ($ETH).

An official 13F disclosure filing with the SEC, showed that Michigan’s pension fund  holds approximately 460,000 shares in the Grayscale Ethereum Trust, valued at approximately $10.07 million.

Additionally, the fund owned 460,000 shares in the Grayscale Ethereum Mini Trust, worth roughly $1.12 million. Beyond, Ethereum, Michigan has also gained exposure to BTC, holding 110,000 shares of the ARK 21Shares Bitcoin ETF, valued at around $7 million.

ETH ETF Inflows Hits 40-day Peak of $52M after Trump win

The Michigan state pension’s funds investment in ETH and BTC ETFs represents a major milestone for the cryptocurrency sector’s growing credibility among US government and demand from corporate entities.

Due to the pre-elections uncertainty, there was a delayed reaction to this event within Ethereum markets. However, after the confirmation of Donald Trump’s victory at the US Presidential elections, on Nov 6, on-chain data shows that ETH ETFs have now received unusually higher inflows in the last 24-hours.

The SosoValue chart below shows real-time updates on Ethereum ETFs aggregate daily net inflows.

As depicted above, Ethereum ETFs recorded $52.29 million net inflows on Nov 6. Zooming out, this the the highest single-day inflows in 40-days, dating back to Sept 27.

This suggests that Trump’s victory and Michigan state pension funds holdings disclosure on Monday, triggered increased demand for Ethereum ETFs. With Trump promising friendlier crypto regulations, demand for ETH could spread across other US corporate establishments, further propelling prices upward.

Ethereum Price Forecast: $3,000 Breakout Ahead? 

Ethereum’s recent inflow of $52.29 million into ETFs on Nov 6 suggests renewed investor confidence in response to Trump’s pro-crypto stance and the Michigan pension funds’ crypto holdings.

In terms of short-term price projection, ETH holding above the Volume Weighted Average Price (VWAP) at $2,803 highlights potential for more upside towards the $2,900 level.

Staying above VWAP often indicates strong market support, as buyers are willing to purchase at higher prices, sustaining momentum. More so, the Donchian Channel’s upper boundary around $2,880 was recently breached. Hence, a weekeaned resistance around that level could clearr Ethereum’s clear path to $2,900 breakout in the days ahead.

If ETH can close above $2,800 and maintain buying volume, it may soon test and break through these key resistance levels. However, a dip below VWAP could trigger a pullback toward support near $2,700, where renewed buying interest could stabilize prices.