Ethereum
Is This MEV Trading Firm Responsible For Ethereum’s Drop Below $3,800?
Ethereum is firm, trending higher, and outperforming the world’s most valuable coin, Bitcoin. Earlier today, Ethereum prices broke $3,900 before retracing sharply below $3,800 and bouncing back to spot rates.
In an attempt to explain the unexpectedly high volatility, especially with prices rapidly dropping from $3,900 and sinking below $3,800, some analysts claim that a large sell order by a Maximum Extractable Value (MEV) trading firm, Symbolic Capital Partners, might be responsible.
Ethereum Is Volatile Above $3,800: Possible Explanation
In a post on X, one crypto journalist, citing another source, said Symbolic Capital Partners offloaded 6,968 ETH, worth over $27 million, with an average selling price of $3,930 in one minute. Notably, one of these transactions involved selling 3,497 ETH simultaneously, with a “high bribe fee” of 90 ETH.
While the exact motive behind this bulk dump remains unclear, their action seemed to have impacted prices, causing volatility.
At spot rates, Ethereum is up 30% from May 2024 lows. Technically, the uptrend remains as long as prices are trading above $3,700. On May 20, ETH prices broke above $3,300 and $3,700. These were two key resistance levels that are now supported.
As long as prices trend above $3,700, bulls might have a foundation for another leg up, taking them to March highs of around $4,100.
Even with ETH volatility being high, overall sentiment remains positive. One analyst on X notes that over the past three weeks, open interest in Ethereum futures across multiple exchanges, like Binance, OKX, and even Bybit, rose to over $4.6 billion.
Open interest is a metric that shows the number of open leveraged positions, long or short. When the number increases, traders are confident in the coin’s prospects.
Spot ETH ETF Fueling Interest
So far, the excitement about Ethereum is related to the positive progress in approving spot exchange-traded funds (ETFs). When writing, the United States Securities and Exchange Commission (SEC) has been actively communicating with potential issuers. Changes have been requested, particularly concerning ETH staking.
Some analysts believe the lack of staking capabilities for spot Ethereum ETFs is positive overall. In a post on X, the analyst argued that if spot Ethereum ETF issuers are allowed to stake, yields will drop, reducing returns for solo stakers. This, in turn, will make individual staking less attractive, impacting network decentralization.
Feature image from Canva, chart from TradingView
Ethereum
Fundraising platform JustGiving accepts over 60 cryptocurrencies including Bitcoin, Ethereum
- JustGiving now accepts over 60 cryptocurrencies for people to donate with
- 94% of crypto users are Millennials and Generation Z
- More than $2 billion has been donated to charitable causes over the past five years
UK-based fundraising platform JustGiving is teaming up with The Giving Block, a digital asset company, to start accepting crypto donations.
JustGiving now allows users to donate in more than 60 cryptocurrencies, including Bitcoin, Ethereum, Tether, and Doge, according to a report from UK Fundraising. The move comes as the crypto market is experiencing a surge in value, with Bitcoin recording a new all-time high of over $94,000 yesterday on CoinMarketCap.
According to JustGiving’s website, over the past 24 years, the fundraising platform has raised $7.2 billion (£6 billion) and is trusted by thousands of charities worldwide, including the Alzheimer’s Society, the British Heart Foundation, Macmillan Cancer Support, and Mind.
Pascale Harvie, President and General Manager of JustGiving, said:
“In recent years there has been a surge in the use of cryptocurrencies and our decision to enable cryptocurrency donations is the latest demonstration of our commitment to forward-thinking innovation.”
Tapping into a tech-savvy demographic is also key. According to JustGiving, 94% of crypto users are Millennials and Gen Z.
Alex Wilson, co-founder of The Giving Block, said that “charities need to tap into this new donor demographic,” adding:
“580 million people now use cryptocurrency around the world and the market is worth nearly $3 trillion. Our goal is to make accepting cryptocurrency donations just as easy as taking any other online donations.”
In a 2024 Annual Report from The Giving Block, it noted that more than $2 billion has been donated to charitable causes over the past five years.
Ethereum
Ethereum Consolidation Continues – Charts Signal Potential Breakout
Ethereum (ETH) has consolidated since November 12, when it hit a local high of $4,446. Despite Bitcoin’s impressive rally capturing market attention, Ethereum has struggled to maintain upward momentum and reclaim its yearly highs. The price action reflects a period of indecision, as ETH faces challenges in breaking through significant resistance levels that could reignite bullish sentiment.
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While Ethereum lags behind Bitcoin in performance, analysts remain optimistic about its potential for a breakout. Notably, Carl Runefelt, a prominent crypto analyst, recently shared a technical analysis suggesting that ETH is on the verge of a major move.
According to Runefelt, Ethereum must push above a key resistance level to trigger a breakout and rejoin the broader market’s bullish trend.
As the second-largest cryptocurrency by market cap, Ethereum’s next steps will be crucial for traders and investors watching the market closely. A breakout above resistance could signal the start of a new upward phase, while continued consolidation might test the patience of market participants. With technical signals aligning and speculation building, Ethereum’s price action in the coming days will likely set the tone for its performance in the weeks ahead.
Ethereum Prepares To Surge
Ethereum has been underwhelming in its price action since March, struggling to keep pace with Bitcoin’s performance. Despite a few notable surges, ETH has yet to achieve the breakout investors eagerly anticipate.
Related Reading: Solana Analyst Expects A Retrace Before It Breaks ATH – Targets Revealed
The prolonged consolidation has frustrated some traders, but an optimistic sentiment remains among those who believe Ethereum is poised for a significant rally once it clears key supply levels.
Top crypto analyst Carl Runefelt recently shared his technical analysis on X, highlighting Ethereum’s current position within a bullish flag pattern. According to Runefelt, ETH has attempted to break out of this formation for the past two weeks, facing stiff resistance at critical supply zones. However, he remains confident that it could rapidly surge to $4,150 once Ethereum breaches this level.
Such a move would mark a substantial percentage increase from current prices, sparking a wave of investor enthusiasm. The fear of missing out (FOMO) could drive additional buying momentum, creating a self-reinforcing price appreciation cycle. If ETH follows this trajectory, it would confirm the bullish flag breakout and signal Ethereum’s return to a dominant position in the crypto market.
ETH Price Action: Technical Details
Ethereum is trading at $3,120 following several days of sideways consolidation below its recent local high of $3,446. Despite the pause in upward momentum, ETH has shown strength by surging above the critical 200-day moving average (MA), currently at $2,957, and maintaining its position above this key technical indicator.
The 200-day MA is often a pivotal line between bullish and bearish trends. Ethereum’s ability to stay above it signals robust support from buyers and growing confidence in the market. If ETH continues to hold this level, it could pave the way for a bullish surge, with the first target being the local top at $3,446.
Beyond that, a break above this resistance level could see ETH aiming for yearly highs near $4,000, reigniting enthusiasm among traders and investors. Such a move would likely confirm Ethereum’s return to a sustained uptrend, aligning it more closely with Bitcoin’s recent bullish performance.
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However, losing the 200-day MA as support could introduce risks of a pullback, potentially sending ETH to retest lower levels. Ethereum’s price action remains strong, with the market eagerly watching for the next significant move.
Featured image from Dall-E, chart from TradingView
Ethereum
Ethereum Holders Endure Unrealized Losses – Is ETH Undervalued?
Ethereum (ETH) has been underperforming in this cycle, trailing far behind Bitcoin’s impressive rally to new all-time highs. While Bitcoin captures headlines with its continued surge, ETH struggles to reclaim its yearly highs, leaving many investors questioning its next move.
Despite the lackluster price action, data from CryptoQuant CEO Ki Young Ju reveals a silver lining for ETH holders. According to Ju, many ETH investors are enduring unrealized losses, reminiscent of ETH’s early 2020 bottom before its explosive bull run. This suggests that the current market conditions might offer a unique opportunity for long-term ETH investors.
Ju’s analysis highlights that substantial price recoveries have historically followed such phases of unrealized losses. If Ethereum starts to gain momentum and close the gap with Bitcoin, the potential gains could be massive. For investors, this could mark the beginning of an upward trend, rewarding those who remain patient during this period of consolidation.
With market sentiment shifting and historical data supporting a bullish case, ETH’s next move could be pivotal. Investors and analysts closely watch ETH’s price action, hoping for signs of a breakout that could reignite its momentum and deliver significant returns.
Last Chance To Buy Ethereum?
Despite Ethereum’s underwhelming performance this cycle, there are signs of bullish price action in recent weeks. ETH has remained relatively stagnant compared to Bitcoin’s meteoric rise. However, optimistic signals suggest this could be the last opportunity to accumulate ETH at discounted prices before it starts its ascent toward new highs.
Critical data from CryptoQuant CEO Ki Young Ju sheds light on an interesting development: the ETH-BTC NUPL (Net Unrealized Profit/Loss) has reached a 4-year low. This indicates that, despite Ethereum’s lagging performance against Bitcoin, many ETH holders are enduring unrealized losses.
This mirrors Ethereum’s early 2020 bottom situation, just before it began its explosive rally. Ju believes that this period of underperformance might present an opportunity for long-term ETH investors, as it could set the stage for a potential surge.
However, Ju also notes that Ethereum’s future heavily depends on the revenue generated by Web3 applications, particularly through stablecoins. While the ecosystem remains promising, it also feels heavily leveraged, and the issue of sustainable growth through Web3 app revenue doesn’t seem likely to resolve anytime soon.
Over a one-year timeframe, Ju finds ETH less appealing than BTC, although regulatory clarity in the future could change the dynamics and enhance Ethereum’s appeal. For now, this period of consolidation presents a critical moment for ETH believers to position themselves before any significant price movements.
ETH Testing Crucial Demand
Ethereum is testing crucial demand above the $3,000 level, trading at $3,120 after several days of sideways consolidation below its local high at $3,446. This consolidation suggests that ETH is preparing for a potential breakout, especially with its recent surge above the key 200-day moving average at $2,957. Holding above this key support level is critical for maintaining bullish momentum.
If Ethereum stays above the 200-day moving average and continues its upward trajectory, the next major resistance zone will be the local high at $3,446. A successful breakout above this level could pave the way for ETH to challenge its yearly highs, potentially reaching the $4,000 mark.
The current price action indicates a solid demand foundation above $3,000, and if ETH can maintain this level, it could trigger a bullish surge. However, failure to hold above the 200-day moving average could lead to a retest of lower support levels, such as $2,900 or even $2,500.
As of now, ETH remains poised for a potential move higher, and traders are watching closely for confirmation of a breakout to new highs.
Featured image from Dall-E, chart from TradingView
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