Ethereum’s $3,650 Barrier: Institutional Buying vs. Technical Resistance

Quick overview

Ethereum ETH/USD is at a very important point right now. The second-largest cryptocurrency in the world is holding steady around $3,500, and traders are eagerly waiting to see if bulls can break through crucial resistance levels that have stopped previous increases. ETH has been trading mostly flat for the past 24 hours, but it is under a lot of pressure from both institutional buying and technical resistance zones. These factors could affect its price till the end of the year.

BitMine’s Aggressive Accumulation Signals Long-Term Conviction

BitMine Immersion Technologies made a daring move last week by buying 110,288 Ether, which represents a 34% increase from the prior week’s acquisitions. This aggressive buying spree, which cost about $400 million, brought the company’s total holdings to 3,505,723 ETH, which is now worth about $12.5 billion and is 2.9% of Ethereum’s total supply.

Tom Lee, the chairman of BitMine, called the recent drop in prices a “attractive opportunity” and said that Wall Street is becoming more interested in blockchain-based asset tokenization. The company started out as a cryptocurrency mining company and has since grown to become the largest corporate Ethereum holder. It has set a big goal of owning 5% of ETH’s total supply. BitMine’s treasury is currently a little bit underwater, with an average purchase price of $3,639 per token. However, Lee is still convinced that Ethereum is a “super cycle story over the next decade.”

Lee’s positive prognosis includes precise price projections. For example, he thinks that ETH would reach between $10,000 and $12,000 by the end of 2025, which would require a 180% rise from where it is now in less than two months.

ETH/USD Technical Analysis Points to Near-Term Decision Point

Several cryptocurrency experts have said that the $3,650 to $3,700 range is the most important area for Ethereum’s next big move. ETH has bounced back from recent lows under $3,058 and is now trading above the 100-hourly Simple Moving Average and a positive trend line at $3,520. However, it is now facing a strong resistance cluster.

Aayush Jindal, a crypto expert, said that Ethereum needs to get above the $3,650 threshold to keep its recovery going. If the breach is successful, it might lead to $3,740, then $3,880, and maybe even the recent swing high at $3,920. The hourly RSI indicator is still above 50, which means that bulls are still in charge. However, the MACD suggests that the bullish zone is losing strength.

Crypto King, a well-known expert, said that ETH is challenging its primary uptrend line on the daily chart. He called this moment “critical” for figuring out if the overall bullish structure is still in place. If prices break above $4,950, they might quickly rise to $5,600. If they can’t retain support, they could go back to $2,000.

Ethereum Price Prediction: Bulls Must Break Through or Risk Extended Consolidation

In the next few days, Ethereum’s medium-term path will probably become clear. Ted Pillows, an analyst, says that if ETH can close above $3,700 every day, prices might rise to the psychologically key $4,000 barrier, confirming the recent rally and possibly drawing in more buyers.

But if ETH is rejected at its current resistance levels, it might go back toward the $3,400 support zone. If bears take over again, it could drop even lower, to the $3,260-$3,360 range. The main support level to keep an eye on is $3,485. The bullish trend line gives it more support at $3,520.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

Occidental Petroleum (OXY) Surges 5% as Iran Conflict Tightens Global Oil Grips

1 day ago

Save

Trump Signals Iran Conflict Resolution: Bitcoin Eyes $70,000 as Risk Appetite Returns

1 day ago

Save

Mastercard and Ripple Join Forces With 85 Giants to Rewire Global Payments

1 day ago

Save