TLDR
- ETH surged 10% to over $2,800 following Trump’s election victory
- Trump promised to make the U.S. a cryptocurrency hub during his campaign
- DeFi indexes are up 22% on average in the past 24 hours
- Market sentiment shows increased optimism for DeFi sector under Trump
- Technical indicators suggest continued bullish momentum for ETH
Ethereum’s price surged past $2,800 on November 7, 2024, marking a 10% increase in the wake of Donald Trump’s presidential election victory.
The cryptocurrency, which had been trading between $2,300 and $2,600, reached levels not seen since early August 2024.
The price movement comes as investors respond to Trump’s campaign promises regarding cryptocurrency regulation.
Throughout his campaign, Trump pledged to establish the United States as a leading cryptocurrency hub, suggesting a potential shift toward more favorable regulatory conditions for the industry.
The surge in Ethereum’s value stands out against the broader cryptocurrency market, where many other digital assets experienced profit-taking.
This selective rally suggests specific optimism about the future of decentralized finance (DeFi) under a Trump administration.
DeFi indexes, which track the performance of major decentralized finance projects, recorded an average increase of 22% in the 24 hours following the election results, according to CoinGecko data.
This outpaces the broader cryptocurrency market, where the CoinDesk 20 index showed only a 3.4% increase during the same period.
Arthur Cheong, co-founder at DeFiance Capital, noted the potential impact of Trump’s victory on social media platform X.
“DeFi Renaissance thesis is progressing as expected with Trump deregulation and crypto friendly policy and rule-making from Republican admin and Senate,” Cheong wrote.
Technical indicators support the current upward trend. The cryptocurrency is trading above its 100-hour Simple Moving Average, with a new bullish trend line forming support at $2,730. Trading data shows increased volume accompanying the price movement, suggesting sustained buyer interest.
The market’s response appears linked to expectations of reduced regulatory oversight under Trump’s leadership.
Industry observers anticipate potential changes in how tokens are classified, with some suggesting a move toward treating certain tokens as commodities rather than securities.
Social media sentiment analysis through Mindshare indicates that DeFi-related discussions are currently leading other trending sectors, including artificial intelligence and meme cryptocurrencies, according to Kaito data.
DeFi above memecoins for mindshare today.
AI dropping but still on top. pic.twitter.com/04kcxM0xrX
— Kaito AI 🌊 (@_kaitoai) November 6, 2024
Some projects, like Aave, have already shown strong fundamentals. Reports indicate that Aave’s quarterly revenue has exceeded its previous peak from the fourth quarter of 2021, suggesting underlying strength in the DeFi sector independent of political developments.
The Trump family’s connection to World Liberty Financial has been noted by market participants as another factor potentially influencing positive sentiment in the cryptocurrency space.
Looking at specific price levels, Ethereum found initial resistance near $2,850, with additional resistance projected at $2,880. Support levels have formed around $2,800, with stronger support at $2,720.
Trading activity shows the price holding above the 23.6% Fibonacci retracement level, calculated from the recent movement between $2,357 and $2,848, suggesting sustained bullish momentum.
The hourly MACD (Moving Average Convergence Divergence) indicator shows increasing momentum in the bullish zone, while the RSI (Relative Strength Index) remains above the 50 mark, indicating healthy buying pressure.
Initial support on any potential downturn appears near $2,800, with additional support levels at $2,720 and $2,650. Market watchers note these levels as potential entry points for traders looking to join the upward trend.
The latest data shows sustained trading volume above average levels, suggesting continued interest in Ethereum at these price points.
