Ethereum is trading above $2,300 once again after adding 1% to its value in the last 24 hours.
The leading altcoin briefly dropped to the $2,200 level as the broader crypto market recorded losses.
However, technical indicators suggest that ETH could rally higher in the near term, with the $2,500 psychological level a target.
JPMorgan files to launch another Ethereum-based tokenized Treasury fund
ETH is up 1% and is now trading above $2,300.
The positive performance comes after JPMorgan filed a registration statement with the US Securities and Exchange Commission (SEC) on Tuesday to launch the JPMorgan OnChain Liquidity-Token Money Market Fund.
According to the filing, the fund would trade under the ticker JLTXX.
JPMorgan explained that JLTXX is a tokenized government money market fund on the Ethereum blockchain.
The fund introduces Token Class Shares, allowing investors to interact with fund shares through blockchain-based transactions while maintaining traditional book-entry ownership records.
JPMorgan stated that the blockchain technology behind the fund will be managed by its business unit, Kinexys Digital Assets.
This latest development is a huge win for Ether as the Ethereum blockchain is currently the only blockchain used by the fund.
However, JPMorgan intends to expand to other blockchains in the future.
The filing states that the fund will primarily invest in short-term US Treasury securities and overnight repurchase agreements fully collateralised by US Treasury securities or cash.
The strategy is designed to maintain a stable net asset value of $1.00 per share while generating current income and preserving liquidity.
Ethereum price forecast
Similar to Bitcoin, the ETH/USD 4-hour chart remains bullish as Ether is trading above $2,300 on Wednesday.
It is holding its position above the 50-day EMA at $2,275 while staying capped beneath the 100-day EMA at $2,340.
However, Ether is capped by the 38.2% Fibonacci retracement of the latest upswing at roughly $2,380, with the 200-day EMA around $2,574 also limiting the current upside movement.
Momentum indicators suggest that the bulls are regaining control.
The RSI hovers just below the neutral 50 mark, and the MACD line is below its signal line and below the zero line, hinting that upside momentum is fragile.
If the bulls regain control, they would encounter immediate resistance at the 100-day EMA near $2,340, with the 38.2% Fibonacci retracement at about $2,380 as the next hurdle.
A daily candle close above these levels would bring the 200-day EMA around $2,574 into focus in the near term.
However, if the sellers take control, the initial support would emerge again at the 50-day EMA around $2,275, followed by a structural band near the former channel top around $2,148.
Failure to defend these levels would see ETH dip lower towards the 23.6% Fibonacci level at roughly $2,138.
The major swing floor around $1,748 would ensure that the broader market trend doesn’t switch bearish in the medium term.
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