After 11 long months, Ethereum breached its 11-month-old resistance with the help Of Fidelity's New Index fund. How did this all happen exactly, and what does it mean for the Future of Ethereum?
Background
Minimum investment requirements for the Fidelity Ethereum Index Fund (1) are $50,000 and $5 million in total sales. Only accredited investors could purchase the asset manager's new Index Fund, which would track the Fidelity Ethereum Index PR. After several weeks of dismal sluggish movement, Ethereum registered a small bullish trend on Wednesday. While the overall market increased when Elon Musk's $44 billion Twitter deal was revived, Ethereum has another outside factor backing its 6% increase. Fidelity, a $4.5 trillion asset management firm, had registered for a new Ethereum Index Fund, its second of the like in the last two years.
A new fund from Fidelity
According to a filing with the Securities and Exchange Commission (SEC) (2), the Fidelity Ethereum Index Fund began selling its shares on September 26 and has raised a little over $5 million. In addition, the fund has a $50,000 minimum investment requirement for outside investors. The Wise Origin Bitcoin Index Fund launched in 2020, and the Ethereum Index Fund is the second product from Fidelity's Digital Asset Management division to be released.
By the end of May 2021, the Bitcoin fund had amassed investments totaling more than $125 million. The new Ethereum fund will monitor the performance of the Fidelity Ethereum Index PR. This is the second significant index fund filing seen in the crypto market this week after New York Digital Investment Group's (NYDIG) new Bitcoin Fund LP was reported on Tuesday. With an average investment of $12.2 million from each investor, this fund raised close to $720 million.
Ethereum reaches a new peak
The price of ETH (3), currently trading at $1,359, has increased by more than 6% due to the general market's bearishness. While announcing the fund's debut kept the candles in the green, it supported ETH's breach above the wedge formed by an 11-month decline. Despite numerous breaches, ETH has been downtrend since its record high in November 2021.
For the time being, ETH may go closer to $1,426 with a retest of the upper trend line as support. This price has been repeatedly tested and is the next significant barrier for the Leader of an altcoin.
