As a seasoned crypto investor with a knack for deciphering market trends and spotting institutional moves, I find myself intrigued by the recent Ethereum price action. The 4.5% surge within 24 hours is indeed promising, but the $94M transfer from the Ethereum Foundation to Kraken has me slightly concerned. However, the foundation’s substantial remaining assets provide a glimmer of hope that they might not be selling en masse just yet.
The analysis of Ethereum‘s price reveals a 24-hour increase of 4.5%, pushing it up against the $2800 barrier as markets regain strength. This rise in price is largely due to Fed Chair Jerome Powell’s optimism about reducing inflation and potential interest rate decreases in the near future, which has ignited renewed buying enthusiasm. Meanwhile, Bitcoin‘s price leap to $65000 on Friday prompted Ethereum to test a significant resistance level, potentially paving the way for further growth. The question remains whether this upward trend will continue?
Ethereum Price Analysis: ETF Outflows and $94M Transfer Put Pressure on ETH Recovery
According to recent transactions, it appears that the Ethereum Foundation (with the address 0xde0) has moved 35,000 ETH to the cryptocurrency exchange Kraken. This transfer, equivalent to around $94.07 million, may suggest that the foundation is considering selling some of its assets to cover operational expenses.
Generally speaking, large sales from big investors or whales tend to fuel the downward trend in the market. However, the analysis of Ethereum’s price suggests that it can maintain its value above $2700, indicating a resilience despite such bearish forces.
As per reports from Arkham Intelligence, it’s indicated that the Ethereum Foundation’s account continues to possess a significant amount of cryptocurrency holdings, currently estimated at around $840 million. This sum encompasses approximately 273,776 Ether (ETH) and 31,015 Wrapped Ether (WETH).
Moreover, it’s worth noting that U.S.-based Ethereum Exchange Traded Funds (ETFs) saw a withdrawal of approximately $5.7 million on Friday, according to SoSoValue data. This withdrawal has added to the seven-day trend of outflows from spot ETFs, thereby tempering the recovery energy in the Ether coin.
ETH Price Hints Major Breakout
Over the past three weeks, the price of Ethereum surged from $2112 to $2760, representing a 30% increase. This bullish trend is further supported by a decrease in the Average Directional Index (ADX) indicator, which suggests a weakening of the bearish influence.
Should the bullish trend continue, Ethereum’s price might surpass the barrier at $2800, potentially triggering a 21% increase that would lead to a new high at around $3400.
As a crypto investor, I’ve noticed from the data provided by intothebook that there are approximately 1.08 million ETH coins held by around 1.13 million addresses at the resistance level of $2800. If these holders decide to sell their assets to break even, we might see an increase in overhead supply for Ethereum, potentially leading to a price drop.
In other words, if we see a reversal, it suggests that the current trend of selling during rallies is still prevalent. This could cause our Ethereum price prediction to be revised downward, potentially taking us back to $2112.
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2024-08-24 17:12