Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Ethereum Makes a Bullish Statement Recovering From A Slight Price Plunge
On Friday 13th August, the prices of Ethereum continued with the long bull pattern, increasing to newer heights. ETH could soon go past its ATH if the trend continues. London fork and institutional support of the crypto world are receiving the credits for the continuous price surges.
Ethereum’s Price Analysis
The ETH coin was on a bullish pattern on Friday 13th, after initially losing the prices to below $3k just a day before. On Thursday, Ethereum’s price plunged to $2984. However, Immediately after the plunge, Ethereum completely changed course and increased in prices, hitting a 24 hour high of $3258, an over 7.8% price increase.
Currently, for the past few hours, the coin’s price chart appears to show an almost flat price pattern but slightly increasing. The market dominance has also dropped somewhat from Sunday’s, which was slightly over 20%. Now the market dominance is just about 19.3%.
In the past few days, Ethereum has been increasing in values, making price breakouts. The closest breakout which the coin surpassed was at $3150. However, a new resistance could stand at $3587, far above the current coin prices.
It’s likely that in the coming days, Ethereum will rally past the next resistance. If Ethereum continues to surge in prices at the same rate, it could probably shortly create a new ATH. However, all that will happen if the trading volumes maintain a good demand-supply position. So, why is this coin in such a bullish trend?
Why Are Ethereum Increasing Prices?
Of course, the London hard fork, which occurred on 5th August, has been credited for the surging prices in the coin. However, there could be another reason, institutional adoption. Neuberger Berman, a New York-based investment management network, filed with the US SEC to introduce a commodity-focused fund a few days ago.
According to the network, launching the commodity fund would provide investors with an opportunity to get exposure to BTC, ETH futures, and some crypto-related ETFs. The fund’s value was $164 million. This institutional adoption could also be bolstering the performance of the Ethereum coin. In the 24 hours preceding this report, Coinbase, the most trusted crypto exchange, recorded higher ETH trading volumes than BTC.
The London hard fork is the primary driver of this price increase, but institutional adoption and increased support from trusted exchanges are also considerable. However, even though the coin is on a steady uptrend, a downtrend is also a much likely occurrence.
A Possible Bearish Turn
The occurrence of a Bearish is also possible in the coin. For example, if the coin increases in value and surpasses the impending resistance at $3.5k, it could start facing a bearish because of reduced activities. This may, in turn, translate into a long downtrend returning the coin to $3.2k, with the support standing at around $3.1k.
If the coin goes below the support level, then further declines could re-appear. Currently, a bearish trend is not likely to occur, but the price increase could slowly diminish.