Ethereum Price Prediction: ETH sets new $25 billion record as Trump triggered Bitcoin’s $100K breakout

Ethereum price analysis:

Ethereum price rose 9.5% within 24 hours to reach a new year-to-date peak of $3,956 on Thursday December 5. However, rapid inflows recorded in ETH derivatives markets after Bitcoin’s $100,000 breakout suggest the Ethereum price rally may not be over yet. 

ETH bears mount $4K resistance as Bitcoin breaches $100K 

After weeks of consolidation within the 98,000 – $95,000 narrow range, Bitcoin price finally crossed the $100,000 mark for the first time ever on December 5, lifting Ethereum and other major altcoins to new yearly peaks.

Based on media reports, the latest crypto market rally was largely driven by Donald Trump’s nomination of Paul Atkins as US SEC chair, viewed as a crypto-friendly replacement for the controversial Gary Gensler.

 While Ethereum price also mirrored Bitcoin’s price surge, it failed to breach the critical $4,000 resistance on Thursday. 

Ethereum price initially surged 13%, to hit a new YTD peak of $3,956 within 12-hours after Trump announced Atkin’s nomination. Having retraced 4% towards the $3,830 mark at the time of publication, ETH now holds 9% daily timeframe gains. 

Although Bitcoin (BTC) dominated the media headlines, the chart above shows BTC’s daily timeframe gains only peaked at 11%, before prices sharply retraced from $104,100 to hit $99,700 at press time. 

This market dynamic signals that there’s a more vibrant bullish momentum within the Ethereum markets, compared to BTC. 

Ethereum Open Interest hits $25 billion record-high after Trump announced Gensler’s replacement

While Ethereum price failed to breach the $4,000 territory as widely anticipated on Thursday,  other vital market trends suggest the rally may not be over yet.

Recent trends observed in the ETH derivatives markets shows traders made record inflows over the last 24-hours, a move that could potentially propel Ethereum into price discovery in weeks ahead. 

Validating this narrative, the Coinglass chart below depicts real-time changes in the total value of funds invested in active ETH futures contracts. 

Ethereum open interest increased by $2.09 billion over the last 24-hours, to reach a new record-high of $25.86 billion at press time on December 5.

More so, after Trump announced Paul Atkin’s as Gensler’s replacement, over $52 million worth of ETH short positions were rapidly liquidated relative to the $16.8 million longs on December 4. 

When a surge in open interest coincides with outsized SHORT liquidations, it signals the Ethereum dominant market sentiment transitioned from bearish to bullish, catching bear traders off guard. 

The sheer size of the $2.09 billion inflows recorded in the last 24-hours signals growing demand from big players, such as hedge funds or institutional investors entering the market in anticipation of fairer regulatory oversight under Paul Atkins. 

If the inflows persist, Ethereum price could potentially advance further towards its current all time high of $4,379 recorded back in November 2021. 

Analyst hints $4k rally

Ethereum (ETH) Price Forecast: Analyst hints $4,000 breakout still in play

Ethereum appears positioned for potential upward movement to break the $4,000 level, driven by several key factors: record institutional inflows into Ethereum ETFs, significant whale accumulation, and growing institutional interest in potential staking-enabled ETF products.

The technical analysis from multiple sources suggests ETH could test its previous all-time high resistance around $4,867 in the near term, particularly following Bitcoin’s recent $100K cross. This outlook is supported by increasing Layer-2 volumes and strong DeFi TVL metrics reaching two-year highs.

However, the key risk factor remains regulatory uncertainty, particularly around the SEC’s stance on staking integration in ETF products, which could significantly impact institutional adoption rates and price momentum

– Juan Pellicer, Senior research analyst, IntoTheBlock

Technical indicators affirm that Ethereum’s price action is approaching a critical inflection point, as shown by the weekly chart forming a large ascending triangle—a bullish continuation pattern. ETH is currently testing the upper boundary of this multi-year sell-wall near $3,950, a level that has historically acted as significant resistance. 

A decisive breakout above this trendline could open the door for a rally toward the $4,500-$5,000 range, aligning with the measured move target of this pattern.

Volume dynamics support the bullish case, with recent green candles accompanied by increasing volume, suggesting growing buying interest as ETH approaches resistance.

Additionally, the ascending trendline from the 2022 lows near $1,000 has consistently provided support, reinforcing the long-term bullish structure.

If ETH manages to secure a weekly close above $4,000, it would confirm the breakout, likely triggering further upside as momentum traders and institutional investors re-enter the market.

Failure to break out, however, could lead to a retest of the $3,600 support zone before another breakout attempt.