Investor enthusiasm and hopes for regulatory easing are setting the stage for Ethereum to rally past $4,000 before Donald Trump’s inauguration. This conclusion was drawn by analysts from Block Scholes and Bybit Analytics.

Experts noted an increase in open interest (OI) for Ethereum perpetual contracts on Bybit ($8.9 billion), surpassing similar metrics for Bitcoin ($6.7 billion). They attribute this to “strategic repositioning” rather than mass liquidations.

A shift in sentiment followed current SEC Chair Gary Gensler’s announcement of his departure by January 20, the analysts said.

Over the past month, Ethereum outpaced Bitcoin in growth—34% versus 31%.

“Futures expiring in one week are trading nearly 25% higher than spot prices annualized. The institutional ‘capture’ of basis is seen as a driver of strong inflows into spot Ethereum ETFs,” the report highlighted.

Data on inflows into these products supports this theory, with $90.1 million recorded on November 27. The positive trend has continued for four consecutive days.

Previously, an analyst under the pseudonym Wolf identified a “Triangle” pattern on Ethereum’s chart, forming since November 2021. He suggests a potential breakout from this consolidation zone targeting $20,000.

Background
In Matrixport, experts identified conditions for a “DeFi renaissance,” citing the pro-crypto administration being formed under Donald Trump.