Ether is showing signs of a strong comeback as it closely follows bitcoin’s rally, recently surpassing $4,000 after a significant climb. Ether increased by 53% in 2024, while bitcoin surged by 113%. Post the U.S. election, ether outperformed bitcoin, rising 39% against bitcoin’s 35%. Factors bolstering this momentum include stable transaction fees, rising institutional interest in ether ETFs, and a promising ETH-BTC ratio, which has hit lows suggesting a possible recovery point. Key reasons for this optimism include ether ETFs outperforming their bitcoin counterparts, with substantial net inflows signaling a shift in investor sentiment. Additionally, the opportunity for traders to rotate from bitcoin to ether is indicated by the declining bitcoin dominance. Ether staking yields and Ethereum's leading role in DeFi, NFTs, and smart contracts contribute to its positive outlook. Furthermore, significant upgrades to Ethereum, like the Dencun upgrade, aim to increase efficiency and scalability. With the Trump administration's policies potentially fostering a favorable environment for crypto, the demand for ether could significantly rise in 2025.

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