Ethereum Technical Analysis: ETH Breaks Above $1,900, As Institutions Show Increasing Interest

Last Updated July 23rd 2021
4 Min Read

Daily Ethereum ETH Price Analysis
  • Ethereum price is climbing in an upward channel formation.
  • ETH 4-hour price chart has had 7 straight bullish sessions.

From February 1, the Ethereum price rose from $1,310 to $1,900 (at press time). That’s a $600 rise in valuation a little over two weeks. As of now, ETH is rising in an upwards channel formation. Let’s take a closer with technical analysis.

 

Ethereum Price Climbs Towards $2,000

The Ethereum price has managed to cross over the $1,800 and $1,980 psychological levels over the last two days, and the bulls will hope to claim the critical $2,000 psychological level soon. The RSI has still not entered the overbought zone, so more growth potential is there.

eth/usd daily chart 021821

Image: ETH/USD daily

On the downside, the strongest support wall is at $1,800, wherein 308,600 addresses had previously purchased a little over 8 million ETH tokens. This level is solid enough to absorb an immense amount of selling pressure.

eth/usd volume chart 021821

Image: IntoTheBlock

The 4-hour Ethereum price chart shows four separate positive buy signals:

  1. It has had 7 straight bullish sessions.
  2. The parabolic SAR has reversed from bearish to bullish.
  3. The 20-bar and 50-bar SMAs have flipped from resistance to support.
  4. The MACD shows increasing bullish market momentum.

eth/usd 4-hour chart 021821

Image: ETH/USD 4-hour

 

Institutional Interest in Ethereum Rising

Meltem Demirors, the chief strategy officer at CoinShares, said that institutional interest in Ether (ETH) is at unprecedented levels. In a recent interview with Fox Business, Demirors revealed that CoinShares has been seeing a surge in institutional interest in ETH in recent times. The company tracks the total institutional inflows into several crypto assets through cryptocurrency firms and investment vehicles. 

In the interview, Demirors said that CoinShares has over $4 billion in assets under management (AUM), primarily in Bitcoin. She added that the firm tracked weekly fund flows of investors allocating to publicly-listed investment vehicles last week and found that most were for ETH. 

Last week, 80% of inflows, or about $175 million, went into Ethereum investment products and we have never seen institutional interest like that before. 

Notably, ETH’s price broke its previous all-time highs recently by reaching $1,875 this year before undergoing a correction. According to a Daily Hodl report, Demirors said that investors are allocating to altcoins to reduce the risks associated with Bitcoin. Their strategy would be to invest in other digital assets that “could have long-term potential to help diversify those balance sheets.” 

Commenting on Tesla’s $1.5 billion investment in Bitcoin, Demirors pointed out that the electric car market was added to the S&P 500 index recently. This means the investment will lead to “a lot more coverage of bitcoin in corporate treasuries,” in her opinion. 

 

Grayscale Buys $350 Million Ether In Feb

Over the past two weeks, Grayscale Ethereum Trust (ETHE) has acquired $350 million worth of Ether (ETH). In a recent filing with the US Securities and Exchange Commission (SEC), Grayscale mentioned that 87,749.87885686 Ethereum (worth around $153,732,197) was bought between February 8th and 11th. 

eth/usd grayscale chart 021821

Image: Bybt.com

The other $200 million worth ETH was bought from 1st to 5th of February, bringing it to a total of $350 million. Grayscale started this month with 2.93 million ETH. It currently holds 3.13 million tokens. This is an increase of about 7% of their total holdings in just two weeks, revealing that there’s notable demand for Ether from sophisticated investors.

Interestingly the company has not purchased any more tokens since February 11th. This might potentially lead to pent-up demand, which could be observed in the next few days.

 

Ethereum Price Is Expected Reach These Levels

Ethereum price is ready to zoom into the $2,000 zone.

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