Ethereum pumps 16% as Elon Musk claims he owns ETH, what’s next?

• Elon Musk said he owns Bitcoin, Dogecoin, and Ethereum apart from Tesla and SpaceX stocks
• ETH rallied 16% from $1714 lows
• ETH/USD spot rates tapped critical Fibonacci extension level, could head higher

JAIPUR (Coinchapter.com) – Bullish sentiment returned in Ethereum markets after Elon Musk said he owns ETH. Bulls bought the news en-masse, causing the second-largest cryptocurrency by market cap to rally upside by 16%.

The B Word Conference

At the B-Word Conference, the Tesla boss was joined by ARK Invest founder, CEO, CIO, Cathie Wood, and Twitter, Square founder Jack Dorsey. Musk spoke out in support of the cryptocurrency ecosystem, especially Bitcoin. However, he expressed concern regarding current mining practices – how they draw in exceptionally high amounts of power to mint fresh BTC.

Tesla will resume Bitcoin payments if the mining ecosystem goes the renewable energy road in a significant way, he claimed. Quashing rumors of crypto market manipulation, Musk said that he is a long-term Bitcoin holder. And wants the cryptocurrency to achieve widespread adoption.

The SpaceX founder revealed that his investments consist of Bitcoin, Ethereum, Dogecoin, and Tesla’s stock. Apart from this, both Tesla and SpaceX own BT on their balance sheets. Crypto Twitter welcomed the news.

Ethereum Technical Setup

Ethereum’s 4-hour chart is showing a descending channel formation since July 7. Bears maintained a firm grip on ETH/USD’s momentum until prices declined from $2,415 to $1,717. A breakout followed when buyers pulled Ether from $1,717 to $1,795.64 (23.6% Fibonacci extension level).

Related: Ethereum analyst explains why ETH is set to break higher

Then came Musk’s statement about him personally owning Ether. ETH/USD had already log a 12% rally from $1,796 to $2,036 (close to the 100% Fibonacci extension level). The news provided further impetus to bulls to go long on the pair.

For the rally to continue, buyers need to push Ethereum to close above $2,036. If the said resistance is reclaimed and bullish pressure sustains, buyers could aim for $2,237.64, coinciding with the 161.8% Fibonacci extension level.

Related: Inflation FUD could send Bitcoin to $45K and Ethereum to $3K, says crypto exchange executive

The surging RSI wave and the MACD indicator’s ongoing bullish cycle, and the upcoming London hard fork could provide the necessary support to the bullish sentiment around Ethereum. However, the ETH/USD pair still needs to trend above the 20-day exponential moving average for a confirmed bullish break. Currently, the 20 EMA coincides with the $2100 price point. Two successive green candles above it would pave the way for a solid rally to the earlier mentioned $2237.64 resistance.