Ethereum ETH
Ethereum price (ETHUSD) is up slightly as traders reflect on the latest news on crypto adoption by big publicly-traded firms. It is trading at $381, which is a few points above this week’s low of $365.
More companies are shifting some of their financial assets to cryptocurrencies, which is likely to have a positive impact on the price of Ethereum and Bitcoin. As we reported earlier, MicroStrategy, a $1.2 billion company decided to shift more than $250 million into Bitcoin.
Just last week, Square, the payment company that owns Cash App, announced that it had bought Bitcoin worth $50 million. A recent report estimated that companies own Bitcoin worth more than $7 billion. There is a possibility that more firms own these currencies through hedge funds and other money managers. For example, GreyScale has more than $7 billion in assets under management. Most of these assets are from companies and other institutional investors.
To be clear, the number of companies that own Ethereum is not well-known. However, as the second-biggest digital currency in the world, analyst believe that some firms will also invest in it as a way of diversifying their holdings. The same can be said about retail investors. Consider what Fidelity wrote in a report published yesterday.
“As this new wave of retail investors familiarize themselves with these channels, some of their attention will undoubtedly flow to Bitcoin and other digital assets.”
A key driver for Ethereum price and its adoption is the Decentralised Finance (DeFi) industry. This is an industry that allows people to create financial products using the blockchain technology. For example, you can create a valid lending company using the technology. Similarly, you can create a lending firm using the blockchain technology.
The daily chart shows that Ethereum price has been in consolidation mode in the past few days. The price is still above the ascending trendline that connects the lowest points in July, September and October. It is also slightly above the 25-day exponential moving average.
Most importantly, the price has failed to move below the support of $312. Therefore, I suspect that the pair will continue rising as bulls aim for the next support at $400. At the same time, a drop below $312 will invalidate this trend.
