BlackRock Shows Strong Interest in Ethereum (ETH), Betting Big on the Smart Contract Platform

BlackRock, the world's largest investment firm, is showing strong interest in Ethereum (ETH).

BlackRock, renowned as the world's largest investment firm, is reportedly showing an increasing interest in Ethereum (ETH).

At the "Insomnia" event on Monday, Robert Mitchnick, the head of digital assets at BlackRock, disclosed that the firm is more enthusiastic about Ethereum than Bitcoin, especially within its technology team.

"For every four people who are excited about Ethereum, there's one who's excited about Bitcoin. It's really the tech team who are big fans of Ethereum and what it can do with smart contracts and Web3 applications," Mitchnick stated.

Despite already managing the biggest Bitcoin ETF, iShares Bitcoin Trust (NYSE:IBIT), and launching a smaller Ethereum ETF in Europe, BlackRock's heightened focus on Ethereum suggests they have something significant planned for ETH.

In other developments, the number of Ethereum validators is on the rise. As the crypto industry recovers from the recent downturn, more individuals are becoming validators to help secure the network.

According to the blockchain analytics platform Glassnode, the total number of Ethereum validators has reached 248,000, marking a 76% increase from the beginning of the year.

Earlier this year, Blockware Solutions highlighted the importance of reaching 500,000 validators to mitigate the risk of slashing. Slashing occurs when validators fail to perform their duties or engage in malicious activity, leading to a reduction in their stake.

In a recent analysis, analyst Josh from Cryptio World noted that although Ethereum is showing some short-term bounces, the bigger picture isn't looking too bright.

"We're still in a bearish market structure, despite some short-term bounces off key levels. The price action is becoming a bit bleak, and we're testing a crucial support zone that could decide the next move."

According to the analyst, Ethereum's price has been falling since it broke below an important support line that has held for years. This move is a strong sign that the market is shifting from bullish to bearish in the long term.

Ethereum is currently testing a key support level at around $1,870, which is the 78.6% Fibonacci retracement. If it breaks below this level and struggles to get back above it, the next stop could be around $1,500, which is a previous low point.

If Ethereum does manage to bounce back, it could face strong resistance between $2,100 and $2,200, which is where it recently stalled. In fact, Ethereum rejected that level almost exactly, confirming that it's a tough barrier to break.

While the Stochastic RSI is showing a bullish signal, hinting at a possible short-term bounce, the RSI is at its lowest since June 2022, showing that the overall trend is still leaning bearish.