Ethereum price (ETHUSD) is in a tight range as investors wait for a new catalyst. The price is trading at $377, which is a few points below this week’s high of $412.
Institutional interest in crypto
Ethereum price has been in an upward trend in the past few months. The price has surged from a low of $90 in March, to the current level of $377. This makes it among the best-performing cryptocurrencies in the market today.
This upward trend was mostly because of the falling US dollar, the increasing demand for alternative assets as interest rates remain at historic low. Also, ETHUSD has increased because of the hopes that Ethereum 2.0 launch will provide more stability, scale, and speed of the network.
Further, the recent embrace of DeFi has been a key catalyst for the price. For perspective, the value held in DeFi has increased from $1 billion in January to more than $4 billion.
Now, a new catalyst is emerging in the corporate world. Companies have started to embrace crypto as a key security. In a statement yesterday, MicroStrategy, a $1.2 billion technology company announced that it was putting $250 million of its cash into Bitcoin.
This is an unconventional strategy since companies save their cash and equivalents in safe treasuries. Although the company did not invest in Ethereum, there is a possibility that other firms will start allocating funds in these assets.
Ethereum price forecast
The daily chart shows that Ethereum price has been moving sideways in the past few days. The price is above the 50-day and 100-day exponential moving averages. Also, it has formed a bullish pennant that is shown in pink, which means that the price is likely to breakout higher. The pair’s volatility has also declined as evidenced by the Average True Range (ATR).
Therefore, there is a possibility that the pair is gearing to break out higher as bulls target the next resistance at $450. On the flip side, a move below $325 will invalidate this trend.