Ethereum (ETH) Is Currently in a Major Support Zone. It's Trading Around the $2K Level

Ethereum is currently in a major support zone. It's trading around the $2K level, which happens to be the bottom of a prominent trendline.

Institutions are piling into Ethereum (ETH) ahead of what could be a huge price surge.

As the price of the world’s second-largest cryptocurrency hovers around a key support level, here’s a look at what happened when it bounced off the same trendline twice last year.

After a steep decline from its all-time highs of around $4,800 in November 2021, the price of ETH fell to $1,700 in May 2022.

At the time, the cryptocurrency was threatening to break down below the lower boundary of a rising channel that had been containing its price fluctuations since the start of 2022.

If the price of ETH dropped below the trendline, it would have opened the door for further declines to $1,000. However, the token bounced back from the trendline and surged to $3,580 in August 2022.

Later, in November 2022, the price of ETH dropped back to the support trendline, this time at around $1,600.

Once again, a break below the trendline could have led to further declines, but the token bounced back and went on to reach highs of $3,730 in early 2023.

The last two times the price of ETH fell to a major support zone and then bounced back, it went on to generate gains of 110% and 250%, respectively.

If the same scenario plays out this time around, then we can expect to see the price of ETH rise to $3,500 in the next few weeks.

In addition to the upward trendline, the price of ETH is currently trading within the strongest support and resistance zone, which is highlighted in the image above by the blue rectangle.

The fact that the price of ETH is now in a key support zone and institutional investors are accumulating the token could help to propel the cryptocurrency higher in the coming weeks.

BlackRock Accumulates Record Amount of Ethereum

The U.S. division of BlackRock (NYSE:BLK), the world’s largest asset manager, has been steadily increasing its crypto investments.

Earlier this year, BlackRock launched its own Bitcoin (BTC) trust and applied for approval to operate a spot Bitcoin ETF.

Now, the firm’s USD Institutional Digital Liquidity Fund (BUIDL) has added $155 million in ETH investments over the last week.

With the new additions, BUIDL’s holdings of ETH have risen to $1,145 billion. Although BUIDL has a diversified portfolio across various chains, including Polygon, Optimism, Arbitrum, Avalanche, and Aptos, Ethereum remains one of the major bets in BUIDL’s portfolio.

It’s worth noting that Trump-backed World Liberty Financial (NASDAQ:WLFI) also holds a significant portion of its assets in ETH, allocating around $41 million to the token, which comprises 40% of the firm’s total portfolio value.

This vote of confidence from institutional investors bodes well for the long-term prospects of ETH.

ETH Price Prediction: Token Can Reach $6K By 2025

Earlier this year, we delved into the factors that could influence the price of ETH in the coming months and years.

Our detailed analysis, which included insights from leading cryptocurrency analysts, suggested that the token could reach $6,000 by 2025.

Although investing directly in ETH seems like the simplest way to capitalize on the crypto’s upcoming bull run, it might not be the very best.

The best cryptos on presale could yield even better returns due to their current low capitalization.

New cryptocurrency usually follows the broader crypto trend but has the potential for greater gains compared to ETH or Bitcoin (BTC).

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1. BTC Bull Token ($BTCBULL) – Best Presale to Benefit From Big Crypto’s Growth

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Despite being closely linked to BTC, $BTCBULL operates on the Ethereum blockchain due to the network’s substantial liquidity pool.

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By directly tying its BTC token giveaways to the actual price of the King Crypto, BTC Bull Token has