Altcoins

4 Undervalued Ethereum Altcoins That Are Gaining Institutional Interest

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The consolidation trend in the cryptocurrency market continues as the leading digital asset Bitcoin struggles to stay above $58,000. Amid the uncertainty, the Ethereum Price and altcoins in its ecosystem are showing a slight increase due to market speculation on ETH spot ETFs approved in mid-July.

A recent report from on-chain data tracker Lookonchain reveals significant accumulations of Ethereum ecosystem tokens by whales and institutions. Specifically, aavebank.eth withdrew 21,027 AAVE ($1.98 million), 205,493 UNI ($1.62 million), 446 ETH ($1.37 million), 102,313 LINK ($1.28 million), and 20,797 ENS ($534,000) from Binance.

Meanwhile, whale “Ox345f” withdrew 508,001 PENDLE ($1.89 million) and 1.08 million LDO ($1.77 million). These large-scale transactions suggest a bullish outlook on Ethereum altcoins, indicating strong confidence from major market players.

Here are the first four Ethereum Tokens from the list above, each well positioned for a significant market reversal.

  • Altcoin Ethereum – Chainlink (LINK)

Chain link (CONNECTION) is a decentralized oracle network that plays a crucial role in connecting real-world data to smart contracts on the Ethereum blockchain.

Chain (LINK) | Tradingview

Amid the current market uncertainty, the native cryptocurrency CONNECTION is moving sideways above the $12.2 support. This horizontal level has remained intact for the past eight months, coinciding with the 200W EMA to create a strong accumulation zone.

Today, the Chain price jumped 0.44% to trade at $12.4, while its market cap rose to $7.53 billion. A potential rebound could send the asset up 28% before challenging key resistance of a descending trend line.

An upside break of this resistance will offer better confirmation of a sustainable recovery.

Read also: Ethereum Price Prediction: Falling Open Interest Suggests Slow Climb to $4,000

Uniswap (UNI) stands out in the decentralized finance (DeFi) landscape as one of the leading decentralized exchanges (DEX) based on the Ethereum blockchain.

Uniswap (UNI) | Tradingview

UNI, the native governance token of Uniswaphas been trading sideways for the last five months amidst the triangle formation. The two converging trend lines of the chart setup are significantly influencing the price movement of this altcoin.

Currently, the Uniswap Price trades at $7.75 seeking support at the lower trend line of the pattern. As a result, Uniswap’s market cap stands at $4.65 billion, while its 24-hour trading volume is $123.1 million.

A potential bounce could push the asset 20% before breaking the upper boundary of the triangle. This breakout will signal the end of the correction pattern and provide momentum for trades to enter the market.

Lido DAO (LDO) is a prominent project in the Ethereum ecosystem, known for its innovative liquid staking solutions. Amid the recent market correction, the LDO Price fell from a high of $2.50 to a low of $1.40, posting a loss of 44%.

Lido DAO (LDO) | Tradingview

The $1.4 support marked as the August 2023 low, provides LDO buyers with renewed demand pressure. With an intraday gain of 3%, the Lido Dao The coin is trading at $1.629, while the market is holding around $1.45 billion.

If the support holds, this altcoin could increase by 22% before challenging the first resistance that brings with it the correction trend. The daily chart shows two declining trend lines that buyers must break before regaining better control over this asset.

AAVE is a leading decentralized finance (DeFi) protocol that allows users to lend and borrow a wide range of cryptocurrencies.

AAVE | Trading View

Overcoming market consolidation, the AAVE Price It has been on the rise for five consecutive days. From a multi-month high of $75.5, the altcoin has jumped 23% to $93.27, and its market cap has jumped by $1.39 billion.

AAVE price currently testing the descending trend line of the descending triangle pattern indicates a turning point for the coin holder. If buyers flip the upper trend line into a suitable support, the ongoing recovery could chase the potential target of $134, followed by $153.7.

However, a bearish reversal could signal the continuation of the consolidation trend within the triangle formation.

Read also: 32.7 Million Ethereum Staked, Nearing All-Time High: What’s Fueling This Phenomenon?

Key takeaway

The ongoing consolidation in Bitcoin and Ethereum shows no clear initiative from buyers or sellers to drive the cryptocurrency market. However, as the BTC price faces further supply pressure from the German government liquidating its Bitcoin, the potential approval of ETH Spot ETFs strengthens Ether. Hence, market whales/institutional entities are showing more interest in Ethereum altcoins, increasing their chance of reversal.

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Frequently Asked Questions (FAQ)

An ETH spot ETF is an exchange-traded fund that directly holds Ethereum as its underlying asset, allowing investors to gain exposure to its price movements without personally owning the cryptocurrency.

Whale hoarding refers to large-scale purchasing activity by individuals or entities (whales) who hold significant amounts of cryptocurrency.

In technical analysis, support refers to a price level below which a cryptocurrency has never fallen, suggesting a concentration of demand or buying interest at that level.

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