Could Ethereum's price rise to $1,500 following the launch of Fidelity's institutional ETH capabilities?
|- In a customer e-mail, Fidelity announced the arrival of Ethereum on its platform with users able to buy, sell and transfer ETH.
- Fidelity’s ETH integration comes into effect this month, but overall Ethereum has not received positive responses from institutions throughout 2022.
- Stuck in a consolidation, ETH might get a boost from the news to touch the 23.6% Fibonacci level, coinciding with $1,518.
Ethereum price, since the Merge, has been in a state of limbo. That said, the second biggest cryptocurrency is still finding demand from investors. This demand will be critical in any revival of ETH's price action, since, at the moment, the altcoin king is struggling to make a move worth more than 2% – in either direction.
Fidelity brings Ethereum
The $3.7 trillion asset management firm recently announced in an e-mail sent to its customers that Ethereum will soon be offered on its platform. With the arrival of institutional Ethereum capabilities, investors will be able to buy, sell and transfer ETH.
Fidelity Digital Assets just sent an email to customers announcing that Ethereum will be available for purchase this month. pic.twitter.com/3V0GCrOt5z
— Bruce Fenton (@brucefenton) October 19, 2022
Fidelity Digital Assets just sent an email to customers announcing that Ethereum will be available for purchase this month. pic.twitter.com/3V0GCrOt5z
— Bruce Fenton (@brucefenton) October 19, 2022
At the same time, investors would be able to tap into the security and client service model that Fidelity currently offers for Bitcoin investments.
This service will be operational from October 28 on Fidelity's platform. However, this would not be the first such announcement from the asset management company this month.
As reported by FXStreet on October 4, Fidelity raised over $5 million through its sales for its Ethereum Index Fund. Filing with the Securities and Exchange Commission (SEC), the Ethereum Index Fund notably has a minimum investment requirement of $50,000 for external investors.
Such developments are expected to be a trigger for Ethereum since the asset has not been a favorite with institutions this year. Throughout 2022 ETH has noted more than $368 million in outflows, which is the highest for any major cryptocurrency. Additionally, the price movement has been pretty mild over the last few weeks.
Ethereum is trying its best
Trading at $1,294, ETH has been rangebound within the same critical support ($1,220) and resistance ($1,420) since mid-September. Although it did manage to breach above the 11-month-old downtrend line, it has observed no uptrend whatsoever.
Even on the macro scale, the impact of external developments has not been significant, but if the market changes, ETH is looking at $1,414 as its next target. Coinciding with the 50-day (red) Simple Moving Average (SMA), the level represents a solid resistance level.
Reclaiming it could push ETH towards the 100-day (blue) SMA at around $1,521, which is where the 23.6% Fibonacci retracement of $3,588 - $883 sits.
In the long run, these levels are crucial in Ethereum's recovery.
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