The Crucial Level to Watch as Ethereum Prepares to Shoot Toward $700
- Ethereum topped out dramatically in August when it hit $490, then crashed.
- The coin currently trades for $370, 25% below those highs.
- Analysts think that Ethereum could soon shoot higher as the macro trend remains bullish.
- ETH will need to hold a crucial support level in the $300 range, then decisively surmount the year-to-date highs around the high-$400s.
- Institutions are getting bullish alongside technical analysts.
- Grayscale Investments recently revealed that it has accumulated 2% of all of the cryptocurrency in circulation.
Ethereum Could Shoot Toward $600-700: Here’s Why
Analysts think that Ethereum is on track to shoot towards $600-700 in the coming months and years as long as it holds pivotal support in the vicinity of $300.
The head of technical analysis at Blockfyre, a crypto-asset research company, recently said on the matter:
“ETH price discovery. 2021 Glaringly obvious only the patient will win but there’s trades to be taken within… $700 likely isn’t too far off. Eth 2.0 Phase 0 within a week could be one of many bullish catalysts although I just don’t think it looks as bullish as BTC. I refuse to not have it in my portfolio. It is the lifeline of alts, and has massive changes ahead.”
Chart of ETH's price action over the past few years with analysis by crypto trader and the had of TA at Blockfyre, Pentoshi. Source: BTCUSD from TradingView.com
This bullish sentiment has been echoed by other analysts.
One analyst noted that a macro analysis of Ethereum suggests that as long as $350 holds, the coin will double to $700 over time.
Institutions Accumulate ETH En-Masse
There is an institutional aspect of the ongoing Ethereum market trend, boosting the chance the asset moves to the upside.
Barry Silbert, founder and CEO of leading digital asset investor the Digital Currency Group, recently said that Grayscale Investments owns 2% of all Ethereum now. This means that the firm holds $800 million worth of the coin, or approximately 2.2 million ETH.
Institutions are accumulating Ethereum as the decentralized finance (DeFi) revolution grows. Spencer Noon, head of DTC Capital, says on the matter:
“My read on #DeFi after speaking with instl investors, fund mgrs, OTC desks, and FOs over the last few wks: The herd is coming. They’re excited about DeFi but new to it, so they’re buying $ETH first.”
While everybody has been focused on our bitcoin accumulation, the @Grayscale Ethereum Trust now holds over 2% of all ETH in circulation
— Barry Silbert (@barrysilbert) October 15, 2020
Analysts think that continued institutional investment in ETH will drive prices dramatically higher.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Carts from TradingView.com The Crucial Level to Watch as Ethereum Prepares to Shoot Toward $600