As Bitcoin has once again hit a new all-time high of $107,000, Ether has also reached a high of $4,108, the highest level in nearly three years (ETH's all-time high was $4,871 set in October 2021). However, selling pressure has since emerged, and as of the time of writing, it has retreated to $3,989, up slightly by 0.12% in the past 24 hours.
Ether Exchange Rate Against Bitcoin Rises to 0.03747
According to data from TradingView, the current ETH/BTC exchange rate has risen to 0.03747 from the low point on November 21, an increase of 10.55% in nearly a month.
Analyst: ETH Needs to Improve Staking Classification Regulatory Clarity for Further Upside
We know that after Trump won the U.S. presidential election last month, Bitcoin has hit multiple new all-time highs, and several old-school altcoins such as SOL, XRP, and others have also set new records. However, as the second-largest cryptocurrency, Ether still has about 20% upside to reach its all-time high.
Regarding the driving force behind Ether's upside, BIT Mining's chief economist Youwei Yang recently stated that one key factor for the next stage of the rally is to improve the regulatory transparency around Ether, especially in the area of staking classification:
Currently, existing Ether spot ETFs are not allowed to stake the ETH they invest in, which was a concession made by the issuers due to regulatory uncertainty.
With the return of Trump, people are optimistic that his administration will provide clear guidance on cryptocurrency regulation, including the staking of Ether. This could pave the way for institutional and traditional finance participants to adopt Ether, enhancing the appeal of ETH as a yield-generating long-term asset.
CryptoQuant: ETH to Break Above $5,000 Next Year
Additionally, a CryptoQuant analyst recently pointed out that while the total supply of ETH is at its highest level since April 2023, the amount of Ether burned through transaction fees has been on an upward trend since September. This suggests that the growth in Ether's supply is still relatively muted.
He believes that if this supply-demand dynamic continues, CryptoQuant forecasts that ETH will soon hit a new all-time high and rise above $5,000 next year.
