AMBCrypto Weekly

What roles are institutio­ns playing in driving Ethereum prices?


Ethereum is in a bit of a pickle at the moment. After rallying up to $3600 in the beginning of October, the asset has been witnessing a wave -like movement and breached its resistance at $3,600.

Although the price has been building hihger and witnessing correction, data suggested there a potential correction on its way.

While no harm has been done to its bullish structure, a drop down to $3000 could be in play due to fundamenta­l reasons, one of them being of high importance, that is institutio­ns.

It is important to note that certain on-chain metrics remain strongly bullish for Ethereum. As per Santiment, the top 10 non-exchange whale addresses continued to accumulate and locked more ETH away than the top 10 exchange addresses, which is a good bullish sign.

Daily active addresses for Ethereum also continued to display bullish divergence as the price of ETH dipped a little since September, but active addresses have continued to rise in the charts.So overall, the on-chain narratives remain positive but a $3000 slide could be lucrative for the long-term picture as well.

So according to a recent survey, Digital Asset BiMonthly Fund Manager by Coinshares Research, close to 42% of investors regarded Ethereum to possess the most compelling growth curve.

The survey represente­d close to $440 billion assets under management and one of the common reasons behind Ethereums’ expected growth, was network diversific­ation.

Now, on the flip side, Coinshares recent weekly fund inflows pictured a different scenario.

Data showed that Ethereum registered minor outflows of $13.5 million, which indicated possible institutio­ns cashing out at the moment. While Bitcoin registered strong inflows of $225 million.

Yes, this is where the institutio­ns can actually drivetheva­luedownto$3,000,justtopush­itbackup.

The plot of accredited investors needs to be understood from a long-term perspectiv­e. Unlike retail investors, institutio­ns do not panic in the market, and they are more likely to buy into the asset when it is at a local bottom or in a liquidity zone.

This could fundamenta­lly be the prime recovery position for Ethereum, as institutio­ns may look to fill their bags in this price range. However, the price may structural­ly move above as well, so it is essential to Do Your Own Research.

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