Ethereum Price Rises As ETH Blockchain Technology Is Used By The European Investment Bank (EIB) For Digital Banknotes
The price of Ethereum (ETH) is rising after convincingly maintaining a critical February high during this month’s correction. The optimistic outlook remains in effect with a psychologically significant level of $ 3,000 in sight.
- Ethereum’s price is raising a wall of concern to drive the cryptocurrency market up.
- The weekly Relative Strength Index (RSI) starts flashing due to diverging bearish momentum.
- The European Investment Bank (EIB) has been issuing $ 121 million digital banknotes over two years.
Ethereum supremacy through liquidity and revenue
Yesterday, with the participation of Goldman Sachs, Banco Santander SA and Societe Generale AG as co-managers, the European Investment Bank, the lending arm of the European Union, issued two-year digital notes using the Ethereum blockchain technology.
According to the EIB, the transaction consists of a series of bond tokens using blockchain technology, in which a number of investors can buy and pay tokens using fiat currency. Digital banknotes have a zero coupon and are registered on the Ethereum blockchain.
The adoption of the Ethereum blockchain is just one of the catalysts for the apparent relative strength of the ETH cryptocurrency price in April. However, a research note from JP Morgan argues that the smart contract giant has also achieved improved liquidity and increased revenue.
The bank and the asset manager stressed that “the depth of the Ethereum spot has recovered faster, and conditions on some exchanges are better than before this event.” In addition, higher staff turnover minimized the impact of liquidation.
The higher income from the public Ethereum blockchain means that a significantly higher share of these tokens can be considered highly liquid, further mitigating the impact of forward liquidation.
Institutional adoption and the demand for Ethereum for diversification purposes make ETH a reliable alternative to Bitcoin, and investors should not underestimate it.
The price of the Ethereum cryptocurrency has currently broken the 161.8% Fibonacci extension resistance of the February collapse at $ 2504. It is approaching the critical level of $ 3,000, canceling the bearish alternative.
Target price is $ 3,000, a 161.8% Fibonacci extension in April to $ 3,020, then a 261.8% Fibonacci extension cluster associated with a 2018 bear market, declining in February and declining in April starting at 3252 US dollars and continuing. up to $ 3626.
Ethereum daily chart (ETH / USD)
As mentioned above, the bearish alternative is ruled out. Hence, as long as the Ethereum price maintains a 161.8% Fibonacci extension at $ 2504 on a daily close, the bullish path should continue in the medium term.
Article by Sheldon McIntyre, CMT, FXStreet
Sheldon has 24 years of investment experience and has held various positions with companies in the United States and Chile. His core skills include the BRIC and G-10 stock markets, swing and position trading, and technical analysis. In 2014 and 2016, he was named one of the “Best Twitter Traders” by Trading IQ and one of the “Best Technical Traders to Follow and Learn” by StockTwits in 2015. He recently completed his Market Specialist (CMT) Diploma. … … Sheldon graduated from the University of Victoria, Canada, where he studied International Political Economy with honors. His academic activities were focused on Northeast Asia. Sheldon is fluent in English and Spanish.
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