Fundamental and Technical Analysis Looking Bullish for Ethereum (ETH)

ETH Bullish

The Ethereum price has been relatively stable in recent weeks, jumping between $190 and $220 in the last month, while now seemingly in a deadlock with the price stuck around $206.

But this consolidation period doesn’t reflect the underlying fundamentals, which are pointing towards some upward movement for ETH, and could according to some analysts kick a huge bull trend off.

Ethereum Fundamentals Pointing Towards Major Bullish Momentum

The Head of DTC Capital, Spencer Noon, recently tweeted about this in an extended thread, explaining that he sees a many factors pointing towards an ETH rally.

Starting his thread off, Noon pointed out that Ethereum active addresses had reached 380k – a figure not seen in over two years, and also iterated that the demand for Ethereum Gas had never been higher.

He also pointed to the exponential growth in Ethereum DeFi, empahsizing there are now 178k DeFi users – almost double from just 5 months ago.

He noted that the DeFi space was maturing rapidly and with $25m of $WBTC minted since 1st May, it pointed towards Ethereum being an economic vacuum for all assets, including Bitcoin.

If that wasn’t enough, however, he pointed out the transactions on Ethereum are up about 30% since January, and that since the drop on 12th March, or ‘Post-Black Thursday’, Noon calls it, there had been a net outflow of ETH from exchanges, which is a sign of accumulation.

Of all Noon’s bullish claims, however, none are more telling than the growth of the Grayscale Ethereum Trust (ETHE).

‘1 million new shares of [Grayscale Investment’s] ETHE have been issued in the past 3 weeks – a sign that institutions are either investing in ETH or locking up their existing holdings at a pace of roughly $1 million per day,’ Noon tweeted.

And since launching its Ethereum Trust, Grayscale’s AUM has grow from $11.7m to $276.5m – a staggering 23.6x over the past year.

Grayscale is an institutional investment tool, and although the asset is not investment in ETH directly, with them issuing 1 million new shares, and the growth of the AUM it certifies the institutional interest in Ethereum.

If Noon is right where could we see ETH go?

One analyst @galaxyBTC recently pointed out that he was expecting a movement up to $250.

As we see on the chart above, it coincides with a descending trendline that has formed since the highs of $290 in February. And with higher lows forming, we could hopefully see it hit $250 if it can break out.

Conclusion

The short-term price is hard to predict, but with all the fundamentals pointing north for Ethereum, it surely is a matter of time before we see some bigger moves.

Utility up, DeFi growing at fantastic rates, and institutional investment starting to get serious about Ethereum, it surely has to be bullish. No doubt markets are irrational, but with the charts forming a bullish pattern, too, we really could see some yearly highs soon.

Author: Tommy Limpitlaw

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When I came up with Ethereum, my first first thought was, 'Okay, this thing is too good to be true.' As it turned out, the core Ethereum idea was good - fundamentally, completely sound

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