Ethereum price aiming for $800 as institutional investors buy the dip

The largest cryptocurrency trust fund, Grayscale, has recently purchased around 131,254 Ethereum pushing its total to $1.66 billion at current prices. Ethereum has managed to defend a critical support level on the daily chart and it’s aiming for higher highs.

Ethereum price faces a major resistance level ahead of $800

On the daily chart, the digital asset has managed to stay above the 26-EMA for several months and just defended the support level again in the past three days. The next significant resistance level is the 2020-high at $635.

ETH/USD daily chart

However, the In/Out of the Money Around Price (IOMAP) chart shows that there is a cluster of resistance between $577 and $593, which means that a breakout above this point can quickly drive Ethereum price towards $635. A further break of this level would push the digital asset to the next weekly resistance level at $800.

ETH IOMAP chart

Considering the recent acquisition of 131,254 Ethereum by Grayscale and the increase in buying pressure, it seems that cracking the resistance at $593 will not be hard for the bulls. Furthermore, Messari, a research crypto platform, has just released a new report stating that Ethereum is bound to process more than $1 trillion in real value transfers this year, eclipsing giants like PayPal, which also supports cryptocurrencies now. 

ETH/USD daily chart

On the other hand, a concerning pattern known as Adam and Even could be forming on the daily chart. The most significant support level of the pattern is $480, which means that a breakdown below this point would drive Ethereum price towards $370. The loss of the 26-EMA would be the first bearish indicator.