Ethereum Has Surged 15% In 3 Days: These 2 Factors Could Push It Even Higher
Over the past three days, Ethereum has mounted a strong comeback after it briefly dipped under $150, rallying as high as $175 just hours ago as of the time of this article’s writing — a multi-week high. This marks a more than 15% rally from the local lows.
Although impressive, there is a confluence of fundamental and technical catalysts that suggest that the ongoing bull trend is not yet complete.
Ethereum Could Be Ready to Slingshot Even Higher
The past few days have seen the news cycle confirm that Ethereum is entering into another bull cycle, despite the harrowing macro backdrop.
Firstly, a report from crypto fund provider Grayscale Investments released this week confirmed that there remain institutional players that continue to demand crypto assets.
The report indicated that during the first quarter of 2020, the firm brought in $503.7 million, with most of the capital allocated in Grayscale’s two flagship crypto funds: the Bitcoin Trust and the Ethereum Trust. On this statistic’s importance to ETH in specific, investor Spencer Noon said:
“Institutional investors are buying ETH. The cat is officially out of the bag. From the latest @GrayscaleInvest report: Ethereum Trust saw $110M in Q1 inflows. This is more than all of its previous inflows combined for the past 2 years ($95.8M).”
And secondly, it was reported by Messari that the amount of value being transacted on the Ethereum network is starting to rival that of BTC, despite it having around 15% of the leading cryptocurrency’s market capitalization.
Technicals Paint an Equally as Bullish Picture
As reported by Bitcoinist previously, a crypto trader known as HornHairs believes the recent price action has allowed ETH’s inverse 12-hour chart to begin to resemble “a 2017 pump in the process of a full retrace,” with his chart showing that Ethereum was recently rejected by a key resistance level.
Should the “full retrace” take place as HornHairs expects, the cryptocurrency will trend back to the $290 highs in the coming weeks.
Not to mention, there are purportedly technical reasons for Bitcoin to head higher, which should help wrest the entire crypto asset class to the upside.
Trader Nunya Bizniz observed that the extremely high volumes seen in March because of the crash are a potential sign that the Bitcoin market may be at a bottom, with previous strong increases in volume coinciding with “turning points in price.”
Spikes in volume, followed by lower highs in volume have been turning points in price.
This time? pic.twitter.com/80WYu4UJf4
— Nunya Bizniz (@Pladizow) April 16, 2020
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