Ethereum (ETH) Rallies Above $3,700, Predicts ETH Will Soon Break $4,000

Ethereum (ETH) is now trading above $3,700, a five-month high, as its price has climbed by 40% over the past four weeks.

Ethereum (ETH) price has climbed five-month highs on Monday, now trading above $3,700 as its price increases by 40% over the past four weeks.

This strong performance has analysts predicting ETH will soon break $4,000.

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

As Ethereum’s price surges in recent weeks, it has managed to capture the attention of investors. At the moment, Ethereum's market capitalization is valued at $445 billion, solidifying its place as the second-largest cryptocurrency behind Bitcoin.

When looking at price movements, Ethereum outperformed Bitcoin with 40% monthly gains compared to 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.

Moreover, the departure of SEC Chair Gary Gensler, which will take effect in January 2025, has amplified investor optimism. Gensler's tenure has been marked by heavy-handed regulatory measures, which many in the crypto community have seen as stifling growth.

The prospect of new leadership at the SEC is seen as an opportunity for a more balanced approach to regulation, sparking renewed interest in Ethereum and other altcoins like XRP.

Taking a glance at derivatives, Ethereum's open interest showed a significant growth, currently standing at $24.46 billion. This marks 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.

Meanwhile, Bitcoin continues to face resistance in its attempt to break the $100,000 threshold. At press time, BTC trades 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.

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