Five-Month High: ETH Gains as Derivatives Market and ETFs Lead Rally

• Ethereum surges to a five-month high, surpassing $3,700, with a 40% gain in the past month.
• Investor optimism grows as SEC Chair Gary Gensler prepares to depart.
• ETH ETFs saw $90 million in inflows on Friday, fueling bullish sentiment.

Ethereum (ETH) is now trading above $3,700, a five-month high, as its price has climbed by 40% over the past four weeks. This strong performance has analysts predicting ETH will soon break $4,000.

This upward trend is largely driven by growing investor optimism following the announcement that SEC Chair Gary Gensler will step down in a few weeks. Many believe this leadership change could usher in a more crypto-friendly regulatory environment, further fueling Ethereum’s rally.

Ethereum Key Trading Metrics

Ethereum’s price surge in recent weeks has attracted significant investor attention. As of now, Ethereum’s market capitalization is valued at $445 billion, securing its position as the second-largest cryptocurrency, just behind Bitcoin. 

Looking at price movement, Ethereum’s 40% monthly gain outperformed Bitcoin’s 34% gains , signaling strong momentum in favor of ETH. This sentiment shift is also evident in the traditional market, with growing inflows into spot ETH ETFs. On November 27, Ethereum ETFs saw $90 million in inflows, adding to the bullish sentiment.

Gensler’s Exit and Regulatory Expectations

Additionally, the departure of SEC Chair Gary Gensler, set for January 2025, has amplified  investor optimism. Gensler’s tenure has been marked by stringent regulatory measures, which many in the crypto community have viewed as obstacles to growth. The prospect of new leadership at the SEC is seen as a chance for more balanced regulation, sparking renewed interest in Ethereum and other altcoins like XRP.

Ethereum’s Open Interest Surge

Ethereum’s open interest in derivatives continued to show significant growth, currently standing at $24.46 billion. This represents a 3.12% increase in the past 24 hours, signaling a surge in investor activity. 

The one-hour change shows a modest 0.35% rise, while liquidations totaled $34.21 million over the past 24 hours. These figures highlight growing demand for Ethereum in the derivatives market and suggest continued upward momentum.

Source Coinglass

Meanwhile, Bitcoin continues to face resistance in its attempt to break the $100,000 threshold. As of press time, BTC is trading at $96,802, showing a minimal 0.1% gain in the last 24 hours. Over the past month, Bitcoin has posted a 34% gain, but its volatility appears to be flattening as it encounters strong resistance at higher levels.