• BlackRock increased its Ethereum holdings amid market decline.
• Ethereum (ETH) price faced resistance, with analysts watching key levels.
• Stablecoin market cap in Ethereum showed long-term expansion.

Ethereum price experienced sharp fluctuations between April 30 and May 6, briefly surpassing $1,850 in early May. However, the asset soon entered a gradual downward trend, reflecting shifting market dynamics.

By the week’s midpoint, it had declined to a low near $1,750. Ethereum price has slightly recovered toward the end of the observed period. However, short-term indicators pointed to weakened momentum. The token fell 1.6% over the past 24 hours and 2.2% across the week.

Despite the subdued short-term performance, institutional accumulation has continued without interruption. BlackRock expanded its exposure to Ethereum by acquiring 10,955 ETH valued at approximately $20.1 Million.

This latest acquisition brings the firm’s total ETH holdings to $74 Million, up from a previous investment of $54 million.

The firm invested substantially in Bitcoin ETFs during the same period, totaling $674.91 Million. This move highlights a broader strategy centered on the two leading digital assets, Bitcoin and Ethereum.

Institutional activity remained a focal point over the week. BlackRock’s continued accumulation of Ethereum signals sustained interest from large-scale investors.

The firm’s additional $20.1 Million ETH purchase on May 3 came amid a broader crypto market pullback. This underscored a divergence between market sentiment and institutional behavior.

The investment represents a 37% increase from its prior Ethereum allocation. This move highlights a steady strategy of diversifying digital asset holdings. Alongside Ethereum, BlackRock committed nearly $675 million to Bitcoin ETFs during the same window.

While institutional flows surged, technical analysis showed Ethereum struggling to break above a strong resistance zone around $1,850.

Market analyst MR Kelvin Trade highlighted that the Ethereum price has tested this level multiple times. However, it failed to close above it with conviction.

The area remains critical, with sellers remaining active around that zone. He stated that if the Ethereum price closes firmly above $1,880, the price could potentially retest this level as new support. This would signal a setup for a move toward the $2,000 mark.

He says, “If ETH can close strong above that resistance (not just wick above), then I’ll be watching for a retest of that zone as new support that’s where I’ll consider longing, targeting the $2K zone.”

However, repeated rejections or false breakouts may lead to a decline toward the next key support at $1,537. At the same time, market observers remained engaged in longer-term benchmarking.

Ethereum’s current valuation is comparable to its value during bear market lows, according to Michaël van de Poppe of MN Capital.

Ethereum price has revisited key price levels in August 2022, March 2020, and January 2019. Historically, these levels have preceded strong 12-month rebounds, suggesting potential for another upward trend.

In past periods, such valuation points corresponded with entry zones. However, no explicit price forecasts were provided.

Ethereum price fluctuated, but DeFiLlama data shows the stablecoin market cap in its ecosystem has reached $124.5 billion as of May 6. This highlights ongoing confidence in Ethereum’s DeFi sector despite market volatility.

This is especially significant when compared to the $124,500 at which Ethereum was in early 2018, when it hit the $1,400 mark.

Ethereum’s exponential growth, nearly one million-fold, highlights its evolving infrastructure. This expansion reinforces its position as a crucial settlement layer in the broader crypto economy.

Stablecoin activity experienced a slight contraction over the past week, with a 0.08% decline. This drop reduced total stablecoin capitalization by approximately $100 Million.

Nevertheless, such figures show how large Ethereum has grown from and also serve to put perspective on institutional entry.

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.