• Chinese tech huge Meitu bought Ether worth $28 million through its subsidiary.
  • In spite of the recent accumulation being a second installation, Meitu stock cost remained unaffected.
  • ETH financiers appear to be holding their ground even as Ethereum price tanked.

Meitu, a Hong Kong-based tech company, announced on Wednesday the acquisition of 16,000 ETH and 386 BTC. The 2nd installation of its investment deserved $50 million in overall and came through Meitu’s subsidiary Miracle Vision.

Meitu obtains $28 million worth of Ether

Thinking about Meitu’s previous Ethereum purchase, which cost $22.1 million for 15,000 ETH, the software company now owns an overall of 31,000 ETH. This financial investment has actually currently netted $6 million or 10% in profit at the time of writing.

Concerning its full-fledged investment in cryptocurrencies, the business stated that its choice was in part driven by the increase in cash supply by central banks around the globe.

The Board believes that the blockchain market is still in its early stage, analogous to the mobile web market in circa 2005. Versus this background, the Board believes cryptocurrencies have ample room for gratitude in worth and by designating part of its treasury in cryptocurrencies can also act as a diversification to holding money.

While Meitu has actually turned into one of the very first business in the East to follow Tesla, Square, and MicroStrategy more of such announcements may follow, specifically thinking about the crucial milestones surrounding the wise contracts platform.

The very first significant step ahead is the change from Proof-of-Work (PoW) to Proof-of-Stake (PoS). While this subject was contentious at first, the number of tokens collected in the ETH 2.0 deposit agreement has actually now struck a staggering 3.5 million worth $6.4 billion.

Additionally, the recently released Ether futures on Chicago Mercantile Exchange (CME) has actually likewise seen 695,550 ETH agreements traded to date, which reveals that investors are interested in the wise contracts platform token and its bullish potential.

Ethereum rate get ready for a retest of $2,000

Ethereum price has been forming a series of greater highs and greater lows, resulting in an ascending parallel channel. Although ETH sliced through the pattern’s lower trendline, the technicals indicate a bullish outlook.

The 100 four-hour moving average (MA) is rising above the 200 four-hour MA around the $1,710 level. If effective, this will represent a “golden cross,” suggesting a boost in the short-term bullish momentum. Remarkably, this cluster accompanies the 78.6% Fibonacci retracement level.

All of the above, consisting of the 50 four-hour MA at $1,811, offers a strong grip for a quick upswing in Ethereum price.

A most likely strategy for the buyers would be to press Ethereum rate towards a retest of the all-time high at $2,042. If the bullish momentum persists, then ETH could climb towards $2,465 and even $3,000, which accompanies the 127.2% and the 161.8% Fibonacci retracement levels, respectively.

ETH/USDT 4-hour chart Adding credence to this outlook is IntoTheBlock’s In/Out of the cash Around Cost (IOMAP) model. This metric exposes a best concoction for an increase, a combination of a stable demand barrier and little to no resistance.

Deal data reveals that approximately 1.1 million addresses hold almost 14.71 million ETH at an average rate of $1,787. Hence, any short-term bearish momentum will likely be soaked up by the investors present here.

Ethereum IOMAP chart In addition, the number of addresses holding between 100,000 to 1,000,000 ETH has increased by 7%, which reveals that whales are not concerned about the recent rate action however are building up the pioneer altcoin.

Ethereum holder circulation chart While everything appears to be bullish for Ethereum price, financiers need to be wary of a drop below the immediate assistance level at $1,729. The downswing would put numerous investors “Out of Money,” triggering a sell-off that could press ETH as low as $1,500.