- Leveraged Ether ETFs see a 160% surge in demand since early November, driven by investor interest in risk assets.
- Analysts predict Ether may break the $4,000 psychological mark due to strong spot buying pressure and ETF inflows.
- Market participants eye technical chart patterns that suggest long-term growth for Ether, with potential targets above $15,000.
Investor demand for leveraged Ether-based trading products has surged, pointing to a possible price rally above the $4,000 level. The increased appetite for risk assets comes amid a broader market recovery following the recent U.S. presidential election, which boosted interest in cryptocurrencies.
Demand for the VolatilityShares 2x Leveraged Ether ETF has soared by over 160% since November 5, according to data from K33 Research. Vetle Lunde, head of research at K33, noted that the ETF now represents more than 50% of CME’s Ether open interest, reflecting significant growth in leveraged exposure.
The increased activity in leveraged trading coincides with expectations of a broader market uptrend for Ether. Analysts are watching technical chart patterns and market flows for further signs of bullish momentum.
Spot Buying and ETF Inflows Fuel Ether’s Price Outlook
While leveraged ETF demand has risen, spot market activity is also contributing to Ether’s upward momentum. Ryan Lee, chief analyst at Bitget Research, noted that the stability in Ether’s implied volatility suggests spot accumulation is driving the recent price breakout.
This trend has analysts predicting that Ether could break the $4,000 psychological barrier, potentially setting the stage for larger price targets. A technical pattern identified by trader Wolf suggests Ether could eventually rise to levels exceeding $15,000, marking a long-term bullish outlook.
Additionally, record inflows of stablecoins to cryptocurrency exchanges in November have provided liquidity, supporting the broader market. Lee pointed out that this trend is unlikely to reverse in the short term, further reinforcing Ether’s positive trajectory.
Bitcoin’s Rangebound Price May Support Ether’s Rally
Bitcoin’s recent price fluctuations, which saw it peak at $99,800 before a slight correction, may play a role in supporting Ether’s performance. Some analysts believe Bitcoin’s rangebound trading between $91,000 and $100,000 could shift attention and liquidity to Ether and other altcoins.
Ether ETFs have also recorded consecutive days of positive inflows, reaching $90 million on November 27, according to Farside Investors. Continued interest in these investment vehicles may provide additional momentum for Ether’s price growth, with analysts optimistic about further gains in the coming months.
