Key Takeaways:
- OnlyFans’ parent company invested $20 million in Ethereum, revealed filings.
- ETH price continued its horizontal movement post Aug 17 crash.
- Moreover, the Ethereum token is moving inside a bullish pattern.
NEW DELHI (CoinChapter.com) — Adult content subscription service OnlyFans’ parent company, Fenix International Limited, invested nearly $20 million into Ethereum (ETH) to diversify its portfolio, according to a recent financial filing.
Fenix International purchased Ethereum worth $19.89 million between 2021 and 2022. However, as the ETH price dropped in the second half of 2022, the value of the firm’s ETH holdings dropped. Fenix International reported an impairment loss of $8.45 million in its report to the UK corporate registry.
Crypto journalist Colin Wu noted that the firm behind the OnlyFans service had labeled its ETH purchase under intangible assets. As of Nov 2022, Fenix International’s ETH holdings had a carrying amount of $11.4 million.
However, despite ETH losses, the firm “recorded sustained growth and profitability,” per the report.
ETH Price Moving Inside A Bullish Triangle Structure
Meanwhile, ETH price has formed a bullish technical pattern called the ‘Ascending Triangle.‘
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Volume helps determine if a breakout is strong.
Under ideal conditions, buyers would enter the market as the trendlines close the gap. As a result, the toke’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the triangle pattern pans out, the ETH price could rally more than 141% to reach nearly $3,980, theoretically.
Crypto traders have taken note of the pattern, which means a breakout attempt might attract more buyers to the market, confirming the breakout.
ETH Price Continues Consolidation
The Ethereum token price continued moving horizontally after the Aug 17 market crash forced the ETH price to dip below $1,600 before recovering. Long lower wicks on ETH price’s daily candles suggest that bulls continue to buy aggressively near the lower levels, keeping the token crabbing above $1,600.
ETH price has not closed below $1,600 since March 13, earlier this year, giving the price level somewhat of a psychological importance.
Hence, if the consolidation period resolves into a breakdown, the ETH price could drop to the support level near $1,590. Moreover, failure of the immediate support level could force the Ethereum token price to test the support near $1,500 before recovering.
Conversely, an uptrend would likely see the ETH price reach the 20-day EMA (red wave) resistance near $1,720. Flipping the immediate resistance might help Ether price target its 100-day EMA (blue wave) resistance near $1,820.
The RSI for ETH remained just inside the neutral region, with a reading of 31.88 on the daily charts.
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