Ethereum breaches 11-month-old resistance as Fidelity raises $5 million with its new ETH Index Fund

While the broader market has been up following news of Elon Musk’s revival of the $44 billion Twitter deal, Ethereum also has another external development supporting its 6% rise. The $4.5 trillion asset management company, Fidelity, filed for a new Ethereum Index Fund, which marks its second such fund in two years.

Fidelity’s new fund

According to the filing with the Securities and Exchange Commission (SEC), the Fidelity Ethereum Index Fund has raised a little over $5 million through its sales which started on September 26. Additionally, the fund has a minimum investment requirement of $50,000 for externalinvestors.

The Ethereum Index Fund is the second launch from Fidelity’s Digital Asset management business after the launch of Wise Origin Bitcoin Index Fund 1 in 2020. 

The Bitcoin fund managed to amass investments worth over $125 million by the end of May 2021. The new Ethereum fund is set to track the performance of Fidelity Ethereum Index PR.

This is the second major index fund filing observed in the crypto space this week, as on Tuesday, FXStreet reported on the filing of New York Digital Investment Group’s (NYDIG) new Bitcoin Fund LP. This fund raised almost $720 million through 59 investors, with each investor averaging $12.2 million.

Ethereum finds a new high

Trading at $1,359, ETH’s price shot up by more than 6% in the last 24 hours, following the effect of the broader market bearishness. While the news of the launch of Fidelity’s fund kept the candles green, it also sustained ETH’s breach above the 11-month-old downtrend wedge.

Following the all-time high of November 2021, ETH has been stuck under the downtrend despite multiple breaches. 

Etheruem 24-hour price chart

For now, a retest of the upper trend line as support could push ETH closer to $1,426, a level repeatedly tested and also stands as the next critical resistance for the altcoin king.