Rally Fades Despite Billionaires’ Blessing

The Ethereum price rally has stalled at $2,900 and may decline to $2,500. However, the Bulls will cheer the news that Carl Icahn is a big fan and wants in.

Talking to Bloomberg Markets, famed activist investor Carl Icahn has declared: “crypto is here to stay”.

He said he doesn’t own any cryptocurrencies at the moment. However, his firm will soon be involved in a “relatively big way.”

Despite the latest billionaire endorsement. The Ethereum price rally has paused at yesterday’s 6-day high of $2,910. ETH is trading at $2,555, having retreated 8% from the session top.

This follows Bitcoin’s failure stay above $40,000. The longs, still scarred from the recent turmoil, rightly decided to book profits on this latest bounce.

Icahn is the latest high-profile money manager to switch his attention to digital assets. Paul Tudor-Jones, Stanley Druckenmiller, and more recently, Bridgewaters Ray Dalio have given Bitcoin their backing.

Ethereum price bulls will be happy that Icahn favours ETH to BTC:

“With Ethereum, it’s the underlying blockchain. So, Ethereum has two things – you can use it as a payment system, you can use it as a store of value.”

He went on to add: “Bitcoin to me is just a store of value.“

Nonetheless, ETH is down by -$250 to the $2,650 support level. If the price fails to hold here, it may well have more downside in the short term.

Ethereum Price Outlook

On Tuesday, the Ethereum price successfully cleared the resistance of a descending trend line at $2,620. The line, in place from the 18th of May, the day before the infamous ‘crypto crash,’ had been a strong area of resistance.

Therefore, once the price cleared it, buyers rushed in. This lifted the Ethereum price to the $2,900 resistance. ETH failed to hold the gains, and the price retreated to $2,660 before yesterday’s second attempt at $2,900.

ETH is now supported between $2,650 and $2,700. This area held well on the previous pull-back from $2,900.

If the price loses this support level, it may drop back to the trend line, which is now at $2,470.

However, if the Ethereum price manages to trade higher through $2,900, it may once again be knocking on the door of $3,000.

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ETH 2-Hour Chart

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