4 Undervalued Ethereum Altcoins Gaining Institutional Interest

The consolidation trend in the cryptocurrency market continues as the leading digital asset Bitcoin struggles to sustain above $58000. Amid the uncertainty, the Ethereum price and altcoins under its ecosystem show a slight uptick due to market speculation of spot ETH ETFs getting approved around mid-July.

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

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

Here are the top four Ethereum tokens from the list above, each well-positioned for a significant market reversal.

• Ethereum Altcoins -Chainlink (LINK)

Chainlink (LINK) is a decentralized oracle network that plays a crucial role in bridging real-world data to smart contracts on the Ethereum blockchain.

Chainlink (LINK)| Tradingview

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

Today, the Chainlink price jumped 0.44% to trade at $12.4, while the market cap surged to $7.53 Billion. A potential rebound could uplift the asset by 28% before challenging the key resistance of a downloping trendline.

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

Also Read: Ethereum Price Forecast: Dwindling Open Interest Hints Sluggish Climb To $4,000

• Uniswap (UNI)

Uniswap (UNI) stands out in the decentralized finance (DeFi) landscape as a leading decentralized exchange (DEX) built on the Ethereum blockchain.

Uniswap (UNI)| Tradingview

UNI, the native governance token of Uniswap, has been trading sideways for the past five months amid the triangle formation. The two converging trendlines of the chart setup are majorly influencing this altcoin’s price movement.

Currently, the Uniswap price trades at $7.75 seeking support at the pattern’s lower trendline. Consequently, the Uniswap market cap holds at $4.65 Billion, while the 24-hour trading volume is at $123.1 Million.

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

• Lido DAO (LDO)

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 $2.5 high to a $1.4 low registering a 44% loss.

Lido DAO (LDO)| Tradingview

The $1.4 support marked as the August 2023 bottom, provides the LDO buyers with renewed demand pressure. With an intraday gain of 3%, the Lido Dao coin trades at $1.629, while the market maintains around $1.45 Billion.

If the support holds, this altcoin may rally 22% before challenging the first resistance carrying the correction trend. The daily chart shows two downsloping trendlines that the buyers need to breach before reclaiming better control over this asset.

• AAVE

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

AAVE| Tradingview

Outperforming the market consolidation, the AAVE price has been rising for five consecutive days. From the multi-month of $75.5, the altcoin surged 23% to hit $93.27 and the market cap jumped $1.39 Billion. 

The AAVE price currently testing the downsloping trendline of the descending triangle pattern indicates a pivot momentum for the coin holder. If buyers flip the overhead trendline into 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 triangle formation.

Also Read: 32.7 Million Ethereum Staked, Nears ATH: What Is Fueling This?

Key Takeaway

The ongoing consolidation in Bitcoin and Ethereum shows no clear initiation from buyers or sellers to drive the crypto market. However, as the BTC price faces additional supply pressure from the German Government liquidating their Bitcoins, the potential approval of Spot ETH ETFs bolsters Ether. Thus, the market whale/institutional entities show a higher interest in the Ethereum altcoins increasing their possibility of reversal.

The post 4 Undervalued Ethereum Altcoins Gaining Institutional Interest appeared first on CoinGape.