Ethereum Price Prediction: ETH Surges Towards $2,400 Psychological Level

Daily Ethereum ETH Technical Analysis

Last Updated July 27th 2021
2 Min Read
  • ETH bulls in control for six straight days.
  • Ethereum price flips several crucial levels to bullish.

Between July 7 and July 20, the Ethereum price dropped from $2,325 to $1,775. In the process, it managed to:

  • Flip the 20-day and 200-day SMAs from support to resistance.
  • Reverse the parabolic SAR from positive to negative.
  • Flip the MACD (market momentum) from green to red.

Let’s see what happened after that.

Ethereum Price Has Six Straight Bullish Sessions

Between July 21 and July 26, the Ethereum price jumped from $1,780 to $2,365 – gaining almost $550 in its overall valuation. During this jump, ETH managed to:

  • Flip back the 20-day, 50-day, and 200-day SMAs from resistance to support.
  • Reverse the parabolic SAR from negative to positive.
  • Flip the MACD from bearish to bullish.

Image: ETH/USD daily

ETH/USD daily chart 072721

Looking at IntoTheBlock’s IOMAP, the Ethereum price faces immediate resistance at $2,400. Previously, at this level, almost 680,000 addresses had purchased over 2 million ETH tokens.

ETH/USD volume chart 072721

Traditional Financial Institutions Ready Ror DeFi?

Fidelity Digital Assets recently reported that 80% of surveyed institutions are interested in digital assets, with 36% of them claiming to have already invested in the asset class. Further, according to Evertas, a cryptocurrency insurance firm, 90% of institutional investors in the US and UK plan on increasing their crypto holdings soon.

According to Cointelegraph, Nick Ovchinnik, chief business development officer of 1inch Network, said that the “inflow of institutional funds will have a long-lasting positive impact on the market.” He added that the presence of reputable entities should boost the market’s stability for retail investors and the much-awaited adoption of this new asset class, stating:

“Those investors are pretty much risk-averse and have a long-term investment horizon. Therefore, the most efficient assets on the market are the ones that will benefit the most due to their dominant position.”

Just recently, the Aave DeFi protocol announced a new platform exclusively for institutional investors. There may be billions locked in DeFi, but it’s a modest sum compared to the trillions of dollars spent each day across the traditional financial system. As the technology available to investors scales to the size of the industry’s growth potential, all eyes are on DeFi and how institutions will mold it.

Many believe that institutions will not significantly impact projects’ decentralization, including the head of growth at Balancer Labs, Jeremy Musighi.

"I think the DeFi community generally recognizes the value of institutional capital. I'd say the overall stance of the DeFi space is welcoming. I think the main bottleneck, other than compliance concerns, is the learning curve that comes with a technological breakthrough. I've done a lot of consulting for financial institutions and many of them are still wrapping their heads around the basics of DeFi.”

DeFi has grown beyond most people’s expectations, but a lot of its underlying infrastructure relies on the Ethereum network. With high gas fees and network congestion plaguing the system, DeFi platforms and users are both looking to jump ship. However, these issues are little more than inconveniences for institutional traders.

Ethereum Price On-Chain Analysis – Santiment

ETH/USD santiment chart 072721

"#Ethereum's top 10 non-exchange whales are adding on to their holdings, as their 21.3M $ETH held this week established a new 5-year high. Meanwhile, top 10 exchange whales recently hit a low of 4.66M $ETH, the lowest since ETH's 2015 inauguration."

Ethereum Price Is Expected To Reach These Levels

If the Ethereum price breaks past the $2,400 resistance barrier, the IOMAP tells us that ETH will reach $2,700.

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