Increasing excitement over a crypto-friendly business environment in the United States following Donald Trump’s presidential election win caused the price of Ether (ETH) to jump over 37% over the last seven days to trade at highs not seen since July 24.
ETH/USD daily chart. Source: TradingView
At the time of writing, Ether is trading at $3,392 with increasing demand through spot Ethereum ETFs, and onchain metrics suggest that the altcoins uptrend remains intact.
Ether open interest hits all-time highs
Ether’s rally over the last seven days was preceded by an increase in open long ETH positions in the futures market. Data from onchain market intelligence firm CryptoQuant shows Ethereum’s total open interest in the derivatives market increased from 9.8 million ETH on Nov. 5 to an all-time high of 13.2 million ETH on Nov. 11.
Open Interest of ETH on all exchanges. Source: CryptoQuant
“ETH finally prints us an ATH on futures OI, which shows that interest has finally returned to the boss of altcoins,” said trader Alan in a post on X, adding that the market can never ignore ETH.
Fellow trader Olek opined that Ether’s rising OI signals “rising liquidity and market engagement.”
Olek added:
“Ethereum, in particular, is flashing signals of a comeback, with heightened activity indicating the market is primed for movement.”
ETH demand increases
CryptoQuant data reveals that increased demand for ETH seems to have gained traction again amid increased onchain activity, as shown by the number of daily active addresses (DAA) on the Ethereum blockchain. The chart below shows an increase in Ethereum’s DAA from 306,751 on Nov. 5 to 388,350 at the time of writing on Nov. 12. This represents a 26% increase, coming after Donald Trump's win in last week’s 2024 US presidential election.
Number of active addresses on Ethereum. Source: CryptoQuant
Thus, onchain data shows that users are interacting more with the layer-1 blockchain, suggesting an increase in Ether token transactions.
According to DappRadar data, Ethereum DApps’ active addresses have increased by 8% over the past seven days. Overall, the data is encouraging, considering other DeFi metrics such as total value locked, number of transactions and NFT volume have also spiked over the past week.
Top layer-1 blockchains; 7-day DApp activity. Source: DappRadar
There is a need for Ethereum’s network growth to be sustained, which will then give rise to the demand required to propel ETH to rise toward $4,000.
Related: ETH 3.0: Sharding may return to scale Ethereum to millions of TPS
US spot Ether ETFs hit $295 million in inflows
Ether’s recovery following Trump’s victory saw spot ETH ETF flows turn positive after recording net outflows of $73 million during the last two days in the run-up to the election on Nov. 5.
These investment products recorded their biggest day of inflows on Nov. 11 since their launch on July 23, registering more than $295 million in inflows, as per SoSoValue data.
Spot Ethereum ETF flows. Source: SoSoValue
The Fidelity Ethereum Fund (FETH) led the pack with a record $115.5 million in inflows, while the BlackRock-issued iShares Ethereum Trust ETF (ETHA) was second with $101 million.
The Grayscale Ethereum Mini Trust ETF (ETH) came in third with $63.3 million in inflows, while the Bitwise Ethereum ETF (ETHW) posted $15.6 million. All other US spot Ether ETFs recorded zero inflow.
Additional data from CoinShares reveals that Ethereum investment products saw inflows totaling $157 million during the week ending Nov. 8, bringing the year-to-date inflows to $915 million and assets under management to $12 billion.
This is “the largest inflow since the ETF launched in July this year, marking a considerable improvement in sentiment,” CoinShares said in an accompanying commentary.
The latest inflows continue a significant trend that began a week ago, suggesting that a continued increase in institutional demand for Ether investment products could propel its price toward the March 12 highs above $4,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.