The investment arm of former U.S. President Donald Trump’s wide-ranging enterprise network has made a major purchase of Ethereum. Less than a day after Ethereum price fell by 10% in 24 hours, the investment group spent this money to acquire this strategic purchase.
In a turbulent time for the markets, Ethereum has dipped as low as $3,433 before a recovery attempt.
This purchase could be a calculated risk to buy the dip to hope for a rebound or as part of an overarching asset diversification strategy amid the global economic uncertainties, as market analysts suggested.
What do Analysts Think?
The price of Ethereum as shown in Ali Martinez’s charts is around $3,439, marked by a blue arrow pointing to the last report price.
A typical price trend indicator would be the SuperTrend indicator and this indicator is based on volatility.
The values it calculates are based on the ATR (average true range). The SuperTrend indicator is the green line below the price when the market is in a bullish state and a red line above the price when the market is bearish in the chart.
Early December ‘Sell’ signal occurs when the price decreases below the red SuperTrend line indicating the beginning of the bearish phase.
On Friday, the high before the steep descent was close to $4,200, which may become a resistance later. The line of the SuperTrend is currently testing a crucial support level.
If the price of Ethereum closes up above the SuperTrend line and stays level, then it could be a signal of a bullish reversal that can be bought on the dips.
However, if it fails to sustain itself above the SuperTrend line and declines further, it might be wise to wait for some further confirmation before entering a long position.
Ethereum Price Technical Outlook
Ethereum faces a heavy struggle at key levels of technical chart support. Ethereum’s price action is just above the $3,400 mark, a crucial psychological and technical threshold, data from TradingView shows.
The immediate resistance comes from the meeting of the 50-day and 100-day Simple Moving Averages (SMAs) for the resistance. This means that the US saw a culmination of efforts to force their ascent to meet a barrier.
More analysis reveals that presently at 22.27, the Money Flow Index (MFI), which measures how much money is flowing in and out of an asset, is low.
Usually, this suggests that the asset may be undersold, giving buying opportunities to investors like Trump’s World Liberty who think this might be an undervalued asset.
Trump’s World Liberty is taking a big bet on Ethereum, and the implication for the Ethereum market and World Liberty’s portfolio is very much on the radar of the crypto community and market watchers.
Whether this bold move will realize substantial returns, or act as a cautionary tale for future high-stakes digital asset investing remains to be seen.
With Ethereum price navigating through its convoluted market dynamics, the next several days will determine whether this bet pays at all.
