VanEck, a prominent player in the Bitcoin ETF management space, recently caused a stir in the Ethereum (ETH) ecosystem by pledging a large stake through Abyss Finance. This commitment amounts to a staggering 4,640 coins for him, which translates into a hefty investment of $16.3 million. Last week, VanEck showed his faith in Ethereum by staking a total of 18,560 ETH, bringing his total value to over $63.82 million.
Notably, the timing of these strategic maneuvers by VanEck coincides with a notable spike in ETH's market value, from $3,250 to $3,730 between April 4th and April 10th. , indicating a price increase of nearly 13%. VanEck’s involvement and the resulting rise in ETH value sparked speculation within the crypto community regarding the potential impact of institutional investment on Ethereum’s price trajectory.
Ethereum price analysis and market trends
Currently, the trading price of Ethereum (ETH) is stable at $3,525.83, with a 24-hour trading volume of $15.29 billion. Despite this impressive trading volume, the cryptocurrency experienced a slight decline of -2.91% during this period. A closer look at the market dynamics reveals that a multi-week sideways wedge pattern has emerged in ETH price action, hinting at an impending breakout.
Despite this period of strength, market sentiment remains cautiously optimistic, supported by the significant presence of buyers near the key support zone of $3,000. This resilience led to a slight rebound in ETH price, highlighting the possibility of another bullish momentum. However, amid these market trends, market participants are anticipating increased volatility and the possibility of significant liquidation in the futures market, and market participants are urged to exercise caution.
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Short-term outlook and potential scenarios
As Ethereum approaches the range contraction of the aforementioned pattern, market analysts are bracing for an impending breakout that is poised to determine the near-term trajectory of the cryptocurrency. A break below the lower bound of the wedge pattern could turn market sentiment bearish, paving the way for a downward extension towards the effective support level at $2,900.
However, amidst prevailing market conditions characterized by increased buyer activity, a breakout above the pattern's upper bound appears to be the more likely scenario. If this materializes, Ethereum is poised to target the next resistance level at $3,700, suggesting that upward momentum could be generated in the near term.
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