- BlackRock purchased an additional $8.65 million of Ethereum (ETH), boosting its holdings.
- The ETH buy aligns with a recent 15% price dip, seen as institutional dip-buying.
- Ethereum holds above $2,400; BlackRock’s move may fuel retail interest for a rally.
BlackRock, among the leading cryptocurrency ETF providers in the United States, bought an additional $8.65 million worth of Ethereum to boost its digital asset holdings.
The latest acquisition amplifies the speculation about institutional investors seeking opportunities to buy cryptocurrencies at lower prices.
Institutional Strategy: Capitalizing on Pullbacks for Holdings Boost
Actions like this by large-scale investors often provide retail traders with insight, depending on the prevailing market conditions. For instance, when a cryptocurrency moves in a zigzag formation while trending, technical analysts use these identified patterns to find good trading spots. In a similar way, institutional investors watching the markets often use pullbacks and retracements to add to their holdings.
Similarly, institutional investors observing the markets capitalize on pullbacks and retracements to boost their holdings. Hence, BlackRock’s latest ETH purchase aligns with a recent pullback, which saw the altcoin’s price decline by 15% in the past week. Many analysts expected ETH to retrace after an impressive rally, citing traders’ tendency to cash in and take profit.
Retail Investors Watch BlackRock; FOMO Looms Ahead of Potential ETH Rally
However, investment opportunities arise during profit-taking, a concept many crypto analysts believe BlackRock capitalized on to make the latest $8.65 million ETH purchase. In the meantime, retail investors reading signals from BlackRock and other institutional traders consider the move a trigger ahead of an expected price rally.
Ethereum’s Broader Bullish Momentum Intact Above $2,400 Support
For most crypto users observing BlackRock’s investment pattern, the firm’s latest acquisition signals its expectation for an Ethereum rally. Hence, smaller investors may follow suit because of the Fear of Missing Out (FOMO).
Meanwhile, it is worth noting that BlackRock’s latest ETH purchase is an isolated aspect of Ethereum’s growing bullish momentum. The flagship altcoin’s latest price surge shattered multiple barriers and flipped users’ perspectives into a bullish sentiment. Ethereum surged above $2,700 in the past week before retracing to the crucial $2,400 region.
TradingView’s data shows that ETH traded for $2,401 at the time of writing, having returned above the crucial level after a retracement. Users expect the bullish momentum to continue and the cryptocurrency to aim for higher targets in the coming weeks.
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