- Goldman Sachs invests in cryptocurrency custodian company BitGo Holdings to satisfy customer demand.
- Ethereum slides towards critical support line despite the positive fundamental news.
Ethereum is hovering around $203 handle amid quiet Asian trading; however, the overall momentum seems to be getting bearish as the second largest coin by market value has lost over 2% in recent 24 hours, while its market capitalization slipped to $20.8B.
Ethereum’s technical picture
ETH/USD is trading within a stone’s throw from critical $200, if it is broken, the sell-off will start snowballing, taking the price towards the first bearish target at $192.72 (October 14 low) and $186 (October 11 low).
On the upside, the price needs to get back above $200 for the recovery to gain traction. This resistance is guarded by SMA200 (4-hour), which makes it harder to break. The next hurdle is seen at $227-$232 congestion zone; however, considering the technical setup, it is out of reach so far. Relative Strength Index (RSI) stays around 50, while momentum indicator confirms low trading activity.
Institutions come to crypto, but market doesn’t care
A steady flow of news indicating institutional interest in cryptocurrency and blockchain industry has had a very little impact on the market so far.
Goldman Sachs Group Inc. and Galaxy Digital Ventures founded by billionaire and crypto enthusiast Mike Novogratz have invested in cryptocurrency custodian company BitGo Holdings to satisfy the demand from the bank’s wealthy clients for secure ways to store digital assets.
BitGo raised $58.5 million during Series fundraising stage, with $15 million contributed by Goldman and Galaxy Digital Ventures. The company was established in 2013, it claims to provide digital wallet services with a multisignature feature as well as offline storage places for Bitcoin and other cryptocurrencies. The solution developed by BitGo is supposed to create a safe place where large institutional investors can hold digital assets, out of reach for hackers.
Goldman is known for its interest in digital assets. Thus, it became the first Wall Street financial tycoon to clear Bitcoin futures that came to life at the end of 2017. In August it became known that Goldman Sachs was considering to offer custody services for digital assets, thus the investment in BitGo could help the bank to move in that direction and develop crypto services of its own.
Cryptocurrency enthusiasts hope that these developments will attract more institutional investors to the market, making it more mature and less volatile, but at this stage, we have to wait and see how it all pans out.
ETH/USD, 4-hour chart
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