Ethereum (ETH) Price Under-performing as Crypto Market Makes Gains
The price of Ethereum is lagging behind as the overall cryptocurrency market begins to make some decent gains this week. The total cryptocurrency market cap has gained almost $14 billion in value in the past 48 hours, climbing from $234.66 billion to the current level at $248.59.
Litecoin (LTC), in particular, is up by an incredible 9.15 percent today as the majority of coins move into the green. XRP is up 5.05 percent and EOS and Stellar (XLM) are both up by almost three percent. Bitcoin (BTC) is also a bit behind with only two percent gains but Ethereum is really down there at only one percent.
New $100 million investment funds eyes Ethereum
Despite the assets struggles, a new crypto firm has announced its plans to make a ten-year investment into Ethereum as part of a $100 million fund. Darma Capital believe Ethereum represents one of the best blockchain projects going forward due to its ‘decentralized internet’ characteristics.
DARMA managing member and recent new joiner Andrew Keys spoke of the firm’s desire to invest in what it considers a ‘new asset class’ and said they are “10 years long” on Ether. Keys previously worked at Ethereum software engineering firm ConsenSys and co-founded ConsenSys Capital. DARMA says it is also considering Bitcoin and Filecoin as other possible investments for the new crypto fund.
The fund, which is registered with the U.S. Commodity Futures Trading Commission (CFTC), reportedly made good use of last year’s volatility and price swings to more than double its ETH investments – accumulating 2.5 times the amount of ETH from its original investment.
ETH/USD Price Analysis
The Ethereum price continues its struggles to break above the significant $250 mark which has proven to be particularly strong resistance throughout this week. ETH’s 20-day simple moving average (SMA20) recently dropped below the SMA50, a signal that commonly indicates further losses.
Downside support will be found at $241 (the 61.8 percent Fibonacci level) and the previous daily low at $235. A break above $250 will face resistance at $255 (the daily SMA20) and the previous weekly high of $288 in the long-term.