Ethereum's (ETH) price has been on the rise in the recent past, with a 1.26% increase in price to $2,654 as of Friday. This price movement is happening at a time when there are many significant events in the crypto marketplace, such as BlackRock overtaking the Ethereum Foundation in ETH holdings and increasing rumors of future market activities.
BlackRock, a global investment management corporation, has established itself as a leading force in the Ethereum market. Data as of the end of the second quarter shows that BlackRock now owns 318,000 ETH, thus becoming the entity with the second-largest stash after the Ethereum Foundation, that holds 308,000 ETH. This shift is a result of the excellent performance of BlackRock’s Ethereum ETF (ETHA), which is close to hitting the $1 billion in net asset flows.
As of August 16, 2024, BlackRock’s ETHA product had gathered $977 million in net asset, and was the only product beyond $500 million. The inclusion of Ethereum to BlackRock’s portfolio will add to the firm’s increasing influence in the digital asset space, similar to its achievements with the US-based Bitcoin spot ETPs.
Some of the analysts have pointed that this flow of capital towards Ethereum is a positive for the cryptocurrency. However, the skepticism is because of the low network activity where the ETH gas fees have fallen to a five-year low.
However, market analysts have given divergent views concerning the future of Ethereum’s price fluctuations. Ryan Lee, Chief Analyst at Bitget Research, pointed out that a medium-term bottom and a subsequent price rise have precedented ETH gas fees falling to such levels.
He pointed out that the decline in gas fees at the moment, along with the anticipated rate cut from the Federal Reserve in September, may bode well for Ethereum.
On the same note, some experts are still skeptical, especially with the recent whale actions that have been seen. Peter Brandt, a seasoned trader, has made a bearish analysis of the price chart of Ethereum and has suggested a drop to $1,651. However, he also noted that charts often fail, which means that the future price of Ethereum in the market cannot be predicted accurately.
Large-scale transactions by Ethereum whales in the recent past have raised eyebrows and caused fear of a market dip. According to blockchain data, Metalpha, an asset management company, sent 10,000 ETH or approximately $26.02 million to Binance.
Likewise, another whale sent 12,675 ETH, which is approximately $3.31 million, to Coinbase.
Such large transfers have sparked debates suggesting that these whales may be gearing up for a price dip, which may result in more selling pressure. Despite these, some analysts believe that the whales may be cashing in on prompt profit-taking chances just before a general market upturn.
With the price of Ethereum hovering around the $2,750 resistance level, the market is still rather volatile. The $2,750 to $2750 to $2,775 has been established as the critical resistance level that if broken, could lead to extended selling pressure that may further the ongoing correction in the crypto market. The price action of Ethereum in the next few days will be of interest as it trades near this critical resistance.
From a technical point of view, Ethereum has risen from the low of $2,111 recorded in July to the current price of $2,615, which marks a 24% appreciation, suggesting a bullish reversal. Nevertheless, the appearance of a bearish crossover of the 50-day and 200-day exponential moving averages shows that the bears are still in control.
The traders are expecting Ethereum to break through the current resistance levels and possibly continue rising higher or if it will experience another round of selling pressure that might drag the price back to $2000.