Institutional Interest For Ethereum Grows As Price Surges Above $700
The presence of institutional investors in Bitcoin paved the way for Ethereum to spark institutional money interest. The cryptocurrency, which is the second-largest crypto in the world, recently crossed its resistance line, which was unstable. Ethereum prices dropped and surged within the $580-$650 range, especially after Bitcoin had its iconic $20,000, which might have triggered ETH’s surge.
The recent rally contributed to its rise and could still skyrocket soon. Currently, Ethereum is worth $750, almost an 8% increase compared to its previous position. Analysts assert that some elements contributed to the surge and open opportunities for other cryptos to gain.
Elements that contributed to Ethereum’s rise
Some experts looked at the surge from a technical view and explained that the market structure and various coming listings helped the price gain successfully. The crypto has gained continuously since this past week, and this made Scott Melker explain some technicalities in play.
The trader opined that the unstable prices of Ethereum bring either a ‘higher high’ or ‘high lower,’ which can make the price rise incredibly. Melker is not the only one foreseeing a higher price for Ethereum.
Another trader, Michael Van de Poppe, opined that if other assets could trade above $470, it might skyrocket ETH’s price to above $1000. Also, he sees a bright future for the digital asset in 2020 and predicted a higher price tag within Q1.
Sources suggest that institutional investors are the primary cause of the rise, and their increased number next year could take the price to the next level. Like in Bitcoin, which experienced large volumes of fundings coming from high-net-worth individuals, Ethereum might have new volumes coming in by next year.
2021: Ethereum expects institutional consumers
Every cryptocurrency wants institutional buyers, which increases the market value of the digital asset. Bitcoin, which had its emergence of institutional investors this year, experienced some stability and continuous hitting of all-new highs this year.
The currency surpassed its resistance point beyond expectations and trades around $24,000 presently. The pandemic affected Bitcoin earlier on when it dropped to a surprising $3,000. Fortunately, the COVID-19 pandemic no longer affects the crypto’s price. Bitcoin is the most valuable digital asset globally, so it is not incredible people invest in it to diversify their portfolios.
Ethereum hopes to see heavier fundings next year since 2020 exposed the world to the importance of digital assets in the world today. Asides from the negative pricing, the dreaded virus made the crypto drop to, the issue helped the growth in technological advancements. Series of digital assets and innovations sprung forth this year. Next year, the innovations continue, with successful crypto advocates igniting the public to take their chances.
Crypto advocates like Michael Saylor, CEO of MicroStrategy, spearheaded numerous Bitcoin investments this year for the firm. The advocate even shared Elon Musk his ‘playbook’ and how Bitcoin is a significant investment in his firm. MicroStrategy has an impressive Bitcoin holding, which might increase even more in 2021.