Ethereum Set for 65% Surge as BlackRock ETH Holdings Exceed $1B
Ethereum Set for 65% Surge as BlackRock ETH Holdings Exceed $1B
From a technical standpoint, Ether’s price is eyeing a potential breakout as it retests a long-term support zone. Historically, bounces from this multi-year support have led to explosive rallies — most notably gains of over 2,000% and 360% during past cycles. As of March 23, the ETH/USD pair was hovering near $2,000, close to the given support area. A bounce from this zone can lead the price toward $3,400 by June—up 65% from current prices. Conversely, a decline below the support zone could push the ETH price toward the 200-2W exponential moving average (200-2W EMA; the blue wave in the first chart) at around $1,560.
BlackRock’s Significant Investment in Ethereum
BlackRock’s BUIDL fund now holds approximately a record $1.145 billion worth of Ether, up from around $990 million a week ago, according to data from Cointelegraph. The fund primarily focuses on tokenized real-world assets (RWAs), with Ethereum remaining the dominant base layer. While the fund diversifies across chains like Avalanche, Polygon, Aptos, Arbitrum, and Optimism, Ethereum remains its core allocation.
Market Dynamics and Onchain Data
The latest on-chain data from Nansen indicates that since March 12, 2024, addresses holding 1,000–10,000 ETH have grown their holdings by 5.65%, while the 10,000–100,000 ETH cohort has risen by 28.73%. This increase in holdings among significant ETH addresses suggests a bullish sentiment among larger investors, potentially driving the price higher in the coming months.
Historical Performance of Ethereum
Ethereum has shown remarkable resilience and growth over the years. In previous cycles, the cryptocurrency has experienced substantial price increases following similar support retests. For instance, during the last major market cycle, Ethereum saw a price increase of over 2,000% from its lows, demonstrating the potential for significant gains when the market conditions align.
Technical Analysis of Ethereum’s Price Movement
Analyzing the technical indicators, the current price action suggests that Ethereum is at a critical juncture. The support zone around $2,000 has historically acted as a strong barrier against downward price movements. If Ethereum can maintain its position above this support level, it could trigger a wave of buying activity, pushing the price towards the projected target of $3,400.
Investment Considerations
It is essential to note that this article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. The cryptocurrency market is known for its volatility, and while the potential for gains is significant, so too is the risk of loss.
Conclusion
In summary, Ethereum is positioned for a potential breakout as it approaches a critical support level. With BlackRock’s substantial investment in ETH and positive on-chain data, the outlook appears optimistic. Investors should remain vigilant and consider market dynamics as they navigate their investment strategies.
