Analysts from Bitfinex are confident that a growing investor appetite in Ethereum could drive its price to $3,200 in the short-term.
The analysts shared this view during a recent interview. Notably, Donald Trump’s re-election as U.S. president has boosted investors’ appetite for risk assets, including Ethereum (ETH), the second-biggest crypto by market cap.
Ethereum ETF Inflows Surge After Trump’s Victory
This is reflected in the increased inflow into spot-based Ethereum ETFs. According to data from Farside, the nine Ethereum ETF products saw an outflow of $63.2 million a day before the U.S. election.
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Expectedly, these funds recorded zero flow on election day. Following Trump’s re-election on November 6, Ethereum ETF net inflows surged to $52.3 million on that day, and $72.9 million the following day.
ETH to Hit $3,200 in Short-Term
Given the influx of capital into Ethereum ETFs and heightened investor appetite, Bitfinex experts project that Ethereum could hit a short-term target of $3,200. They expect this prediction to play out in the next few months.
Specifically, the analysts expect Ethereum’s rally to commence as soon as Bitcoin’s market dominance surpasses 60%. For context, Bitcoin’s market dominance stood at 59.7% as of 1:32 p.m. (UTC). The figure had surged to over 60% earlier today but dropped below this level at press time.
Currently, Ethereum is trading at $2,937, suggesting that it requires a slight increase of 8.95% to reach the $3,200 target. Should ETH hit the target, it would still be down 34.57% from its all-time high of $4,891, registered on November 16, 2021.
Experts Remain Confident Amid Price Correction Threats
While Bitfinex is optimistic about a potential rally for Ethereum, the recent spike in ETH net flows into derivative exchanges has triggered concerns about an imminent price correction.
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On November 5, CryptoQuant reported netflows of 82,000 ETH into derivatives exchanges, suggesting that such movements usually pave the way for increased volatility or price dip.
Furthermore, several Ethereum whales have been coming out of multi-year dormancy to sell ETH, mounting pressure on the asset. As reported yesterday, three Ethereum addresses, dormant for over eight years, sold over 44,700 ETH. This comes after the price of ETH rose to $2,700.
With analysts eyeing ETH’s surge to $3,200, more dormant Ethereum addresses might offload some of their holdings, negatively impacting the coin’s price.
Nonetheless, Bitfinex analysts believe that the ETH price will skyrocket in a month, highlighting Ethereum’s surging open interest as a potential catalyst for the increase. According to the experts, Ethereum’s open interest recently surged to abnormal levels, hitting $1.3 million compared to the $800,000 recorded throughout August.
“This leads us to believe that in a month, Ether should start seeing good upside,” they remarked.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.