Key Points
- Ethereum (ETH) price shows signs of a potential bullish breakout amid increasing interest from Wall Street.
- Ethereum continues to be a popular choice among institutional investors, despite competition from other blockchain networks.
Ethereum (ETH) price has shown a promising rebound from the support level of around $2,300 in the past three months. On Monday, the price surged by over 6 percent to retest a significant resistance level of around $2,630.
Ethereum’s Potential Market Reversal
The top-tier altcoin, well-regarded in the web3 space, has been hinting at a potential market reversal since it hit a bottom in early August. From a technical analysis perspective, the Ether price against the US dollar has been consolidating in a symmetrical triangular pattern. Veteran trader Peter Brandt suggests that the Ether price against the US dollar has been forming a potential inverted head and shoulders (H&S) pattern, along with a bullish divergence on the daily Relative Strength Index (RSI).
Consequently, Ether price could be gearing up for a significant bull run towards its all-time high (ATH) in the near future. Additionally, the ETH/BTC pair has formed a double bottom after being stuck in a falling trend in the past few years, coupled with a rising divergence on the RSI. However, for the bullish stance to be rejuvenated, the Ether price against the US dollar must consistently close above the crucial resistance/support level around $2,800 in the near term. If not, a potential correction below $2,400 could happen again before the final rebound towards the all-time high.
Ethereum’s Popularity among Institutional Investors
Following Bitcoin (BTC), Ethereum remains the second most favored crypto asset by institutional investors worldwide. As of this writing, the Ether network had a fully diluted valuation of about $314 billion and a daily average traded volume of around $18.6 billion.
The Ethereum network has gained significant popularity in the Web3 space and commanded over $44 billion in total value locked (TVL) and over $84 billion in stablecoins supply. According to BlackRock’s CEO Larry Fink, Ethereum as a blockchain network has the potential to grow dramatically in the near future fueled by rising liquidity and transparency.
On Monday, the US spot Ether ETFs registered a net cash inflow of around $17 million, led by BlackRock’s ETHA. However, the notable cash outflows from Grayscale’s ETHE have weighed heavily on the Ether’s bullish momentum in the recent past.
Meanwhile, the Ethereum network has faced intense competition from other layer one chains led by Solana and BNB Chain. According to Justin Bons, the founder and CIO of Cyber Capital, the Ethereum network is facing major headwinds as its revenue gradually declines due to the rise in its layer two networks. Bons believes that Ether is effectively bankrupt, not just intellectually and ethically but also economically.
