BlackRock Buys $750 Million in Ethereum Amid Price Crash

In June, the world’s largest asset manager, BlackRock, made a significant move in the cryptocurrency market by acquiring over $750 million worth of Ethereum tokens. This investment, revealed through on-chain data, has sparked considerable interest and speculation among analysts. Notably, BlackRock has not sold any of these tokens since the purchase, despite a recent crash in Ethereum's price.

BlackRock's crypto-focused fund currently holds approximately 1.67 million tokens, valued at around $4.23 billion. Recent data indicates that the fund has added over 6,000 tokens this week alone, further fueling market curiosity. This influx of investment suggests a strong belief in Ethereum's long-term potential, even as the cryptocurrency faces short-term price volatility.

The current price of Ethereum is trading close to $2,490, reflecting a recent downturn despite rising demand. Technical indicators such as the Relative Strength Index (RSI) at 46.85 and a negative Moving Average Convergence Divergence (MACD) histogram suggest weakening momentum. Analysts are closely monitoring whether Ethereum can maintain support above $2,450 to avoid a further dip toward $2,350. If Ethereum can gain strength and push beyond $2,600, it could set the stage for a rally toward the next major price target of around $2,800–$2,900.

AI-driven crypto tools suggest that the current market movements are more about tactical rotation rather than panic. This indicates that capital is shifting between Ethereum and Bitcoin, but both remain key holdings for long-term investment strategies. The long-term outlook for Ethereum remains optimistic, with potential gains up to $3,600 if demand stays steady and broader economic conditions remain favorable. However, there are risks, as macroeconomic shifts could push Ethereum back down to $2,000, testing lower support levels.

The development and investment outlook for Ethereum remain bullish. The adoption of Layer-2 solutions like Optimism, Base, and zkSync is contributing to increased network activity and scalability, which are highly valued by investors. These Layer-2 solutions are making Ethereum more scalable, which investors value.

In conclusion, the recent Ethereum price crash, coupled with BlackRock's significant investment, has created a complex market dynamic. While short-term volatility persists, the strong fundamentals and institutional backing provide a solid foundation for Ethereum's next big move. As the market continues to evolve, it will be crucial for investors to stay informed and conduct thorough research before making any investment decisions.