Ethereum [ETH] has little resistance until $3,390

Ethereum [ETH] price surged to a whopping $3,000 for the first time in almost 80 days on the 7th of August. It wasn’t until the short-term sellers flipped the bullish narrative. But the weekend uptrend appears to have extended as the asset erased the subsequent losses and climbed back to $3,119, at the time of writing. The pullback was temporary and it was up by more than 20% over the past week.

According to the latest charts by the popular data analytic platform IntoTheBlock [ITB], the world’s largest altcoin has little resistance now that its price jumped above $3k. However, its next prominent hurdle stands tall at $3.39k. Its tweet regarding the same read,

“Ethereum [ETH] broke the $2,900 resistance and the IOMAP reveals that it has little resistance until $3,390. On the support side, around $2,860, over $800k $ETH were bought. Failing to hold on that level, there are two even larger levels of support until $2,6k.”

Several industry leaders have remained optimistic about ETH’s overall long-term prospects. As a matter of fact, many others have claimed that the digital asset is likely to reach a new all-time high by the year-end and even rally to $10,000 or more in the next 12 months. The prediction though bold does not appear to be far-fetched as Ethereum has been on the best-performing assets in the last two quarters. Its fundamentals have never looked more bullish especially in the days leading up to Ethereum’s long-awaited London hard fork.

Significant rotation out of Bitcoin to Ethereum

Ethereum has been the talk of the town long before the hyped upgrade went live on the network thus paving the way for a huge transition. This can be evidenced in the latest report by the digital asset firm, Genesis which revealed that a significant rotation out of Bitcoin into Ethereum.

As institutional interest remained intact, the firm’s new loan originations surged by approximately 700% YoY and hit a new peak of $25 billion in the second quarter of 2021, and were 60% higher quarter-over-quarter. The report noted that the cumulative originated value to be at $66 billion which, in fact, marks the thirteenth consecutive quarter of growth.

While Bitcoin trading accounted for roughly 47% of Genesis’s overall spot trading activity, Ethereum pulled out most of that share from Bitcoin. According to the firm’s estimates, ETH accounted for nearly 25% of overall volumes on the desk. This had a ripple effect as other Ethereum-based DeFi protocols gained steam with the outperformance of ETH over BTC in the first half of Q2. Similarly, trading in UNI, SUSHI, AAVE also picked up.