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Highlights
- Ethereum price is on the verge of a 24% rally to $3,200 as it squeezes out of a symmetrical triangle pattern.
- The rally is likely to happen soon as institutional demand towards Ethereum surges.
- Firms that were previously Bitcoin-native such as Bit Digital are also abandoning BTC for ETH as the latter defends the $2,500 support level.
Ethereum (ETH) is receiving a lot of interest from firms on Wall Street that are pursuing the asset for crypto-focused treasuries while abandoning Bitcoin (BTC). This interest coincides with the appearance of a symmetrical triangle that hints Ethereum price is about to record a 20% rally to $3,200. As of July 8, ETH was trading at $2,577 with a slight 0.8% increase in the last 24 hours.
ETH Price Defends $2,500 Support as Firms Ditch BTC to ETH
Ethereum price is defending the $2,500 level support for the last six days. The ability of bullish traders to defend this support level shows that there is little interest among traders to sell their holdings, and this might largely be caused by an increase in demand by institutions.
CoinGape recently reported that Bit Digital, a Nasdaq-listed company that was previously entirely focused on Bitcoin, is going to shift to ETH after it sold 280 BTC and used the proceeds to buy Ethereum. Bit Digital now holds 100,603 ETH tokens after a massive buying activity that has seen it emerge as one of the biggest holders.
However, Bit Digital is not the only entity that is turning its attention towards Ethereum, considering that the recent CoinShares report revealed that there is a lot of institutional interest in the largest altcoin, which is helping the Ethereum price sustain gains.
In its latest weekly report, CoinShares revealed that there are more institutions buying Ethereum-based products than those buying Bitcoin products. This is because the weekly inflows to ETH products have averaged 1.6% of the AUM in the last 11 weeks, which is higher than the 0.8% for Bitcoin products.
At the same time, Ethereum treasuries are picking up the pace, being led by Sharplink Gaming, which has grown its ETH treasury to 205,634 tokens. The most recent purchase by Sharplink Gaming has made it one of the largest institutional holders of Ethereum.
When such demand continues across Wall Street, the Ethereum price may record notable gains soon, and this becomes even more likely to happen considering that it is trading in a symmetrical triangle.
Symmetrical Triangle Signals 20% ETH Rally to $3,200
ETH price appears to have formed a symmetrical triangle pattern, which is a sign that, after the price has been in consolidation for a long time, it is about to experience a strong breakout. The four-hour chart is showing that ETH is close to the edge of this narrowing formation, and if it can move above the resistance level at $2,604, it is possible that Ethereum will surge.
If ETH can confirm a strong close above this resistance line, it is likely that the price will move upwards, and the most immediate target from the 24% rally will be $3,200.
The MACD indicator is aligning with this bullish narrative for the Ethereum price prediction portrayed by the symmetrical pattern. This is because it has created a buy signal from the MACD line crossing above the signal line. At the same time, the RSI with a reading of 59, is supporting that bullish traders have the upper hand, and the price of Ethereum will likely make a strong move.
Going by this technical structure and the surging demand from institutions, it is possible that the ETH price will move past the psychological level of $3,000 that bulls have been targeting for a long time. The largest altcoin might also end up outperforming Bitcoin if the level of interest in it remains significantly high.
Frequently Asked Questions (FAQs)
1. Can Ethereum price break $3,000 in July?
2. Why are institutions dumping BTC for ETH?
3. What does a symmetrical triangle pattern show about Ethereum?
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