Ethereum Price Risks Of Falling To $3.4K Despite ETF Optimism, Here’s Why

by

As a researcher with a background in cryptocurrencies and market analysis, I find the recent developments in Ethereum’s price movements intriguing. The recent regulatory approval for an Ethereum ETF by the SEC is a positive sign, but the cautious approach of investors seems to be causing a dip in price. This trend is not unusual in the crypto market, where profit-taking and portfolio rebalancing can lead to significant volatility.

In spite of the SEC’s approval of the Spot Ethereum ETF, Ethereum’s price has seen a decline. This drop in value suggests that investors are exercising caution before making significant investments. Nevertheless, a well-known crypto analyst has identified several potential factors that could impact Ethereum’s behavior in the near future. These elements may lead to a possible decrease in price, approaching $3.4K.

Analyst Unveils Potential ETH Movements

As a dedicated crypto investor, I’ve been closely following Ethereum’s market trends lately. Notably, I’ve observed some significant transfers of ETH to cryptocurrency exchanges, which has piqued my interest. These transactions have fueled rumors among the community about impending profit-taking, portfolio adjustments, or mere speculative activities in the Ethereum market.

As an analyst, I’d like to highlight an additional worrying factor: Ethereum co-founder Jeffrey Wilke recently moved 10,000 ETH, equivalent to around $37.38 million, to the Kraken exchange. This substantial transfer raises suspicions of a possible sell-off, which could potentially lead to price fluctuations in the Ethereum market.

As a researcher examining data from Spot On Chain, I’ve discovered that over 242,000 Ether (ETH) have been transferred to exchange wallets within the past two weeks, with Wilke’s move being one of them. This trend significantly contributes to the recent surge in Ethereum trading activity.

Ethereum Price Risks Of Falling To $3.4K Despite ETF Optimism, Here’s Why

At the same time, Martinez noted that the TD Sequential indicator was signaling a sell opportunity for Ethereum based on its daily chart analysis. This widely-used predictive tool indicates that Ethereum could experience selling pressure, potentially leading to a price correction or even a bearish trend reversal before any potential bull run may resume.

Key Ethereum Price Levels

Based on information from IntoTheBlock, approximately 1.81 million Ethereum holders may potentially step in to buy if the price falls, as they previously purchased around 1.66 million Ether within the price range of $3,820 and $3,700.

As a researcher analyzing Ethereum’s price movements, I propose that the current price range could serve as a cushion against escalating selling pressure. However, should Ethereum’s price drop below this zone, the subsequent support level would be situated between $3,580 and $3,462. It is important to highlight that approximately 3.13 million addresses have transacted over 1.50 million ETH within this range.

Ethereum Price Risks Of Falling To $3.4K Despite ETF Optimism, Here’s Why

Alternatively, the crucial barrier of resistance for Ethereum lies between $3,940 and $4,054. Over 1.16 million wallets have previously bought approximately 574,660 ETH within this price range. If Ethereum manages to break through this resistance and finish above $4,170, it could overturn the bearish perspective and possibly spark a fresh upward trajectory towards $5,000.

As a market analyst, I’ve noticed that some industry experts believe the approval of an Ethereum Exchange-Traded Fund (ETF) could fuel long-term price growth for Ethereum, similar to how Bitcoin‘s price rallied following the U.S. Spot Bitcoin ETF approval. However, a word of caution: this optimistic outlook comes with some risk in the short term. Some investors might choose to sell their Ethereum holdings due to recent price increases, leading to potential market volatility.

I’ve analyzed the current market situation, and as of my observation, Ethereum’s price has dipped approximately 4.5%, trading at around $3,659.16. The trading volume for Ethereum has significantly increased by over 93.23% to reach $47.91 billion. Over the past month, Ethereum’s market cap second-largest crypto witnessed a price range between $3,943.55 (high) and $2,815.92 (low). It is essential to note that Open Interest for Ethereum has decreased by 5.90% to settle at $15.33 billion in conjunction with the price drop. (Source: CoinGlass data)

Read More

2024-05-24 12:44