Ethereum has finally broken through the $3,000 threshold early Saturday, reaching a peak of $3,056. This comes after months of struggle for Ethereum, while Bitcoin has been soaring and breaking multiple all-time price records. Ethereum had fallen to as low as $2,375 before the US election, but with President-elect Donald Trump’s positive stance on digital assets, Ethereum’s price has been rising and has outpaced Bitcoin’s recent jump.
Bitcoin, on the other hand, continues to push to new all-time highs and reached a new high of $77,239 on Friday. Its previous all-time high of $73,737 was surpassed on Tuesday night as Trump’s win became apparent. Even before the election, Bitcoin had been gaining significant ground, with investors allocating billions of dollars to spot Bitcoin ETFs and its market dominance compared to Ethereum reaching a three-year high.
While Ethereum’s decentralized finance (DeFi) applications are a pillar of the industry, regulatory uncertainty and enforcement threats have posed challenges. However, there are signs that this could change under a Trump-led change of leadership at the Securities and Exchange Commission (SEC). Ethereum’s proximity to DeFi could be seen more favorably, as evidenced by related tokens like Aave and Ethena experiencing price gains.
Although Ethereum has underperformed Bitcoin in terms of year-to-date gains, its climb past $3,000 has been boosted by Trump’s win. However, Ethereum is still chasing its peak of $4,878 set in November 2021. The approval of spot Ethereum ETFs appeared less likely earlier this year when the Ethereum Foundation was being investigated by the SEC. However, the investigation ended three months later, and spot Ethereum ETFs were approved in May. Despite a lackluster debut, the momentum has shifted since Trump’s win, with spot Ethereum ETFs experiencing significant inflows.
There has been growing debate around Dencun, an Ethereum upgrade that provided dedicated space for posting transactions on layer-2 networks. While the upgrade made layer-2 networks cheaper, some believe that Ethereum’s overall supply has become inflationary again, leading to a drop in overall fee revenue. Nevertheless, traders remain optimistic and the market maintains a strong bullish sentiment for both Ethereum and Bitcoin.
Overall, Ethereum’s price is beginning to rise and it could benefit from a more favorable regulatory environment under Trump’s administration. However, it still has to catch up to Bitcoin’s recent performance and reach its previous all-time high.