Ethereum Faces Technical Correction Despite $1.6B Corporate Treasury Accumulation Wave
Ethereum (ETH) is having a technical drop from its recent highs. It is trading around $2,940, down 1.6% in the last 24 hours, although it is
Quick overview
- Ethereum is currently trading around $2,940, down 1.6% in the last 24 hours, and has fallen below $3,000 after briefly surpassing that level last week.
- Corporate treasury accumulation of Ethereum has reached historic levels, with firms purchasing over 545,000 ETH worth more than $1.6 billion in the past month.
- Institutional inflows into Ethereum-based investment funds have hit their fourth-highest weekly record, totaling $990 million over the last 12 weeks.
- Technical analysis suggests a potential correction for Ethereum, with key support at $2,900 and resistance at $3,000, indicating a critical point for future price movement.
Ethereum ETH/USD is having a technical drop from its recent highs. It is trading around $2,940, down 1.6% in the last 24 hours, although it is still above the important $2,900 barrier. The second biggest cryptocurrency in the world has dropped back below $3,000 after briefly going above that level last week. This was the first time it has been at that level since February.
ETH Corporate Treasury Accumulation Reaches Historic Levels
The recent price changes happen at a time when firms are buying up more ETH than ever before. In the past month, Ethereum treasury companies have bought up more than 545,000 ETH worth over $1.6 billion. Several important players have spearheaded this huge buying binge in order to get long-term exposure to the Ethereum ecosystem.
With more than 255,000 ETH, SharpLink, the gaming platform started by Joseph Lubin, the developer of Consensys, is now the biggest corporate Ethereum treasury holder. On Monday alone, the business bought 24,371 ETH for $73.2 million. This was on top of earlier purchases of 10,000 ETH on July 11 and 16,370 ETH on July 13.
BitMine Immersion Technologies, which is led by Fundstrat’s Tom Lee, has also joined the accumulating trend. They own 163,142 ETH, which is worth about $480 million. Lee compared it to Michael Saylor’s Bitcoin plan and said that ETH treasuries that hold 5% of the total supply may get similar support from Wall Street.
Institutional Inflows Hit Fourth-Highest Weekly Record
CoinShares said that Ethereum-based investment funds had their 12th straight week of inflows, bringing the total to $990 million. This supports the idea of corporate accumulation. This is the fourth-largest weekly inflow on record, and it brings the total for the year so far to almost $4 billion, with almost 30% of that coming in the last two weeks.
In terms of relative strength, it looks like institutions are quite interested in Ethereum. Inflows over the past 12 weeks have made up 19.5% of total assets under management for global Ether funds, whereas inflows for Bitcoin funds have only made up 9.8%.
ETH/USD Technical Analysis Points to Potential Correction
Even while the fundamentals are good for Ethereum, the technical picture implies that a pullback may be coming. The cryptocurrency fell below a crucial bullish trend line with support at $2,980 on the hourly chart, which means that the momentum is slowing down following its recent rise to $3,081.
Right now, technical indicators give us a mixed picture:
- Hourly MACD: Gaining momentum in the bearish zone
- Hourly RSI: Below the 50 level, indicating weakening buying pressure
- Key Support: $2,900 level (major support zone)
- Key Resistance: $3,000 level (immediate resistance)
The price has gone back below the 50% Fibonacci retracement level of the upward advance from the $2,905 swing low to the $3,081 high, which could mean that people are taking profits following the recent rise.
Ethereum Price Prediction and Key Levels to Watch
Ethereum is at important technical crossroads right now that will decide which way it moves next. If ETH can stay above the $2,900 level, it might try to move up again toward the $3,000 resistance level. If the price breaks above $3,040, it might go up to the previous high of $3,080 and maybe even as high as $3,200-$3,220.
If the $2,900 support doesn’t hold, though, the price might drop even more to $2,800, and there are even more dangers of it dropping to $2,720 and $2,650 if selling pressure rises.
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