Ethereum (ETH) is at a turning point, with mixed signals for both growth and caution.

Donald Trump’s recent victory has shifted attention to crypto markets, particularly Bitcoin, which often influences Ethereum’s growth. Investors expect pro-crypto policies from a Trump-led administration, especially with a Republican Congress potentially supporting blockchain innovation. This has fueled speculation that Bitcoin may reach new highs, which could lift Ethereum as well. Historically, Ethereum’s price often tracks Bitcoin's performance, as institutional and retail investors look to diversify within major cryptocurrencies. Bitcoin’s rally could lead to a spillover effect, increasing capital flow into Ethereum, benefiting its ecosystem and driving broader market growth

Bitcoin ETFs opened the door to institutional money, with BlackRock and Fidelity dominating with a combined AUM of over $50 billion. If Ethereum ETFs get approval, similar inflows could follow. Big names like BlackRock and Fidelity are already waiting. This type of investment could draw in large amounts of capital, especially from traditional investors who need regulated options. More inflows could push ETH prices higher possibly into regions around $5000 - $10,000.

Ethereum Dencun upgrade could lower transaction costs by 90%. This upgrade would support more transactions, increasing efficiency. Ethereum’s DeFi ecosystem has a total locked value 13 times greater than its closest competitors Solana, Polkadot, and Cardano. With lower costs, it could attract even more users and developers, reinforcing its lead in DeFi which could push its price higher in the coming days. Will ETH hit $3,402 by Nov 13th?

But Ethereum also faces challenges

Whales are moving large amounts of ETH off exchanges, which often signals a sell-off. These high-volume transactions by major holders can weigh on the price. This year, Ethereum’s performance has lagged behind Bitcoin. Big sell-offs can hurt investor confidence.

Ethereum’s position is also threatened by other blockchains. Solana, Polygon, and Avalanche offer lower transaction costs and faster speeds. Some institutions are showing interest in these alternatives, which could pull users away from Ethereum. If these chains continue to gain traction, Ethereum could lose its edge.

The Altcoin Season Index is also low. When Bitcoin dominates, it limits growth opportunities for altcoins like ETH. Investors are showing more interest in Bitcoin, and this trend affects Ethereum’s short-term potential. Until the Altcoin Index shifts, Ethereum might struggle to gain momentum.