Ethereum price rose to a six-week high of $2,377.64 on Tuesday as institutional investors continued to accumulate assets.
summary
- Ethereum price rose to a six-week high near $2,377 as institutional investor accumulation and continued spot ETF inflows supported the bullish momentum.
- Tom Lee’s financial company Bitmine buys about 61,000 shares $ETH Over the past week, its total holdings have increased to approximately 4.6 million shares. $ETH.
- The short squeeze above $2,300 triggered the liquidation of concentrated bearish positions and added momentum to the rally.
According to data from crypto.news, Ethereum ($ETH) The price rose 6% to $2,377.64 on March 17, its highest since early February, but has settled around $2,334 at press time. The stock has increased for four consecutive days, registering a 13% rise in the period.
The main factor driving up profits was aggressive buying by institutional investors. Notably, Tom Lee’s Ethereum treasury company Bitmine is a driving force behind increasing market confidence. Notably, the company purchased approximately 61,000 shares. $ETH Total for the past week $ETH It hides approximately 4.6 million, or about 3.81% of the total. $ETH Supply of tokens.
With its latest Ethereum acquisition, Lee noted that the company is accelerating its purchases as its analysts believe the asset’s price is near rock bottom amid the ongoing crypto catastrophe caused by macroeconomic and geopolitical concerns.
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Ethereum, like other major crypto assets, has so far outperformed U.S. tech stocks since the outbreak of the U.S.-Iran war, which sent oil prices soaring to multi-year highs and raised concerns of runaway inflation.
Ethereum prices have also been supported by a flurry of inflows into spot Ethereum ETFs, which have been attracting a lot of retail attention. SoSoValue data shows spots in the US $ETH The ETF had five consecutive days of inflows for the first time since mid-January, with net inflows of $248 million.
Meanwhile, today’s rally was also supported by the subsequent short squeeze. $ETH The price broke above $2,300 and a large short position was eliminated.
On the daily chart, Ethereum price has recently broken above the 20-day and 50-day moving averages, suggesting that the bulls are regaining control of the market. It also broke above $2,200, a key resistance level that had served as a formidable ceiling on at least two attempts in March.
$ETH/$USDT 1 day price chart. “>
$ETH/$USDT 1-day price chart — March 17 | Source: crypto.news
The supertrend flashed green for the first time since January 20th. Typically, when the Supertrend indicator turns green, the asset price enters a sustained bullish phase. Additionally, the 20-day and 50-day SMAs are nearing a bullish crossover, indicating that upward momentum is strengthening.
For now, $2,594 serves as the next major resistance area that the bulls will likely try to challenge. A breakout of this level could signal a major shift in market sentiment and lay the foundation for a retrace towards the psychological milestone of $3,000.
Conversely, failure to sustain the 50-day SMA at $2,118 could lead to a retest of the lower support level as sellers look to take advantage of bearish signs.
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Disclosure: This article does not represent investment advice. The content and materials published on this page are for educational purposes only.
