Ethher (eth), the native cryptocurrency of Ethereum, fell below $ 3,700 after the strong rebound that was recorded last week, which allowed him to exceed the resistance of $ 3,800 after five months.
At the time of publication of this note, The ETH price is $ 3,724, just over 20% below its historical maximum (ATH) reached in November 2021, as seen in the following tradingview graph:
The price drop occurs in a context in which Many investors began to take profits. In this regard, Min Jung, Research Research Analyst Research, points out that price correction is happening «without a clear catalyst», in addition to adding: «This seems more like a break or a profit taking event, especially considering that ETH has risen 7% during the last week.»
The concrete thing is that, despite this correction, there are still reasons for Ethereum currency investors not to feel discouraged. It is not yet perceived signs that this price correction is going to be deepened. In fact, it is quite the opposite: possibly Ethh lateralize in the range of 3,500 to $ 3,900 for a while.
This is important because consolidating such levels will give you the necessary impulse to exceed the 4,000 dollar psychological barrier.
In addition, tendency indicators show that eth cryptocurrency is still in a bullish trajectory.
One of them is the exponential mobile average (EMA), an indicator that has proven to be a reliable tool to identify trend changes and possible entry or exit points in the market.
For example, one of the most used strategies is to observe The crossing between the EMA of 10 and 20 days: When the 10 days crosses above 20, it is usually considered an entry point; If the relationship is invested, it is interpreted as a possible output signal.
At this time, the 10 -day EMA (blue line) remains above 20 days (red line), indicating that, from the technical point of view, there are still no reason to get rid of positions in ETH.
Another popular indicator to follow trends in trading is Superrend. Based on it Average True Range (ATR), combines information on market management and volatility, allowing possible tendency changes and defining levels of stop loss (loss stops).
Its operation is simple: it shows a line that changes color according to the price movement. When it is green, it means that the trend is bullish and in red when it is bassist.
As seen in the following graph, it currently indicates an upward trend:
Corporate interest in Ether grows
Another factor that supports the idea that ETH is consolidating a bullish structure is the growing interest that awakens on Wall Street.
As cryptootics has reported, More and more companies are analyzing the possibility of incorporating Ether to his treasury as a reserve asset. A sample of this trend is that there are currently 2 million ETH in the hands of companies, foundations, DAO protocols and government entities:
James Ford, an financial market analyst, explains that this phenomenon is because «institutions are finally beginning to realize that ETH could be the basis of many of the defining tendencies that could redefine not only cryptocurrencies, but also finances.»
And in that «realize» the most important thing to highlight is that institutions see in ETH an asset to generate additional income through staffing. One of the companies that is being benefited by this strategy is Sharplink (SBET), a sports betting company that lies in Nasdaq, which has obtained 322 ETH, the equivalent of 1 million dollars.
Matt Hougan, Investment Director of the Bitwise digital asset management firm, believes: «Everything indicates that the trend of ‘companies with treasury in ETH’ will continue to accelerate. The key is in itself the actions of these companies quote with a premium with respect to the value of the cryptoactives they possess, and at this time, that is true for companies with treasury in Eth.
That is, Hougan highlights that investors are valuing the companies that accumulate ETH not only for the value of the asset they possess, but also for their future projection. That «cousin» suggests confidence in the model and could encourage more companies to adopt similar strategies.
But institutional adoption does not end there. So far in July, the ETHEF Bolsa (ETF) funds captured More than 2.2 billion dollars in ticketswhich has promoted this rebound in the price of the asset.
Since its launch to the market, these financial instruments accumulate more than 8,000 million dollars.
Alcist projections
Finally, we must not lose sight of the fact that the bullish projections for ETH in 2025 continue.
Standard Chartered, a multinational bank based in the United Kingdom, predicts that Ethereum’s currency will be $ 4,000 in 2025.
Bitwise, meanwhile, projects that ETH could exceed its historical maximum of $ 4,890 before the end of the year.
For his part, Julio Moreno, Chief of Research of Cryptoquant, explains that The fact that ETH is kept close to the 4,000 dollar resistance is important facing the future. This is because the price made, a metric that reflects the average price to which investors bought their ETH, is $ 5,240.
This suggests that if you break the barrier of 4,000 dollars, Ether will have a long bullish journey ahead.