Two Factors Are Pushing Ethereum’s Price To Surge Again

There are two factors that are pushing the price of Ethereum to surge by 15 percent over the past three days. The price reached $175 just a few hours ago which marks the highest increase by 15 percent from the local lows as we are reading in the ETH price news.

There are multiple fundamental and technical catalysts that suggest that the bull trend is not completed yet. Over the past few days, there were cycles confirming that Ethereum is entering into another bull cycle despite the backdrop. The report from crypto fund provider Greyscale Investments that was released a few days ago, confirms that there are some major institutional players that continue to boost the demand for crypto assets. The report also indicated that during the first quarter of the year, the company bought $50.7 million and most of the capital allocated in the company was in two major funds: the Bitcoin trust and the Ethereum trust. Spencer Noon, an investor commented about the importance of the statistics:

 “Institutional investors are buying ETH. The cat is officially out of the bag. From the latest @GrayscaleInvest report: Ethereum Trust saw $110M in Q1 inflows. This is more than all of its previous inflows combined for the past 2 years ($95.8M).”

It was also reported by Messari that the amount of value that was transacted on the Ethereum network will rival the one of Bitcoin despite it having about 15% of the leading cryptocurrency market cap. As it was previously reported, the crypto trader known as HornHairs believes that the price action for Ethereum, allowed the altcoin’s inverse 12-hour chart to start resembling the 2017 pump in ‘’the process of full retrace’’ and the charts show that Ethereum was rejected by the key resistance level.

As HornHairs was referring to an inverse chart and the two factors, what actually happened was that ETH painted a clean bounce off the $149 support which is great for the bullish narrative. The price action was quite clear with the swing failure pattern whereas Ethereum interacted shortly with the zone of historical liquidity but didn’t manage to make a new low which should skew the short-term price action as positive. If the full retrace takes place, the cryptocurrency will go back to the $290 highs in the upcoming weeks. There are technical reasons why Bitcoin will head higher it could help boost the entire crypto asset class to the upside.