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Ethereum Founder to Sell $37 Million in ETH Before ETF Decision

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Recent significant Ethereum (ETH) transfers to cryptocurrency exchanges have caught the market’s attention. This move has raised speculation about potential profit-taking, portfolio rebalancing, or market speculation.

These developments coincide with the US Securities and Exchange Commission (SEC) nearing a decision on the Vaneck Ethereum exchange-traded fund (ETF), which has heightened expectations within the industry.

Investors Transfer ETH to Exchanges

Jeffrey Wilke, one of the founders of Ethereum, has transferred 10,000 ETH, worth around $37.38 million, to the cryptocurrency exchange Kraken. While the motive behind such a significant transfer is unclear, a few hypotheses can be derived from it.

  • Profit Taking: Wilke may be selling off his tokens to realize profits. This could be due to achieving his desired return on investment or anticipating a potential downturn in the market.
  • Rebalancing Portfolios: Wilke might be rebalancing his portfolios by selling some tokens and buying others. This could be based on changes in market conditions, project developments, or his investment strategy.
  • Market Speculation: Wilke might be speculating on short-term price movements or taking advantage of arbitrage opportunities between different cryptocurrency exchanges.
Jeffrey Wilke's Wallet Activity
Jeffrey Wilke’s Wallet Activity. Source: SpotOnChain

Whether Wilke aims to book profits, rebalance his portfolio, or speculate on the market, he appears not the only one. Looking at Ethereum’s balance on exchanges reveals a spike in the tokens available to sell.

  • Balance on Exchanges: This refers to the total amount of Ethereum held in cryptocurrency exchange wallets.

Over the last two weeks, more than 242,000 ETH have moved to cryptocurrency exchange wallets. This indicates increased trading activity on exchanges that can contribute to price volatility.

Ethereum Balance on Exchanges. Source: Glassnode

Ethereum ETF Approval Looms

The timing of these transfers is notable, as it aligns with today’s SEC final ruling regarding the Vaneck Ethereum ETF. Interestingly, on May 20, the SEC requested Nasdaq, CBOE, and NYSE to refine their applications for listing spot Ethereum ETFs, hinting at a potential approval of these filings.

In response to this regulatory development, Eric Balchunas and James Seyffart, ETF analysts at Bloomberg Intelligence, remarked that the likelihood of approval has substantially increased, shifting from only 25% to a considerable 75%.

“Hearing chatter this afternoon that the SEC could be doing a 180 on this increasingly political issue, so now everyone is scrambling. But again, we cap it at 75% until we see more, e.g., filing updates,” Balchunas wrote.

Read more: Ethereum ETF Explained: What It Is and How It Works

Ethereum ETF Approval Odds
Ethereum ETF Approval Odds. Source: Polymarket

Similarly, Polymarket, a decentralized prediction market platform that allows users to place bets on world events, shows a significant increase in approval odds, which have risen from 10% to 70% over the past 72 hours.

Warning Signal for Traders

Although industry leaders like Anthony Pompliano see the Ethereum ETF approval as an “approval of the entire industry” and as “the last dam to be broken,” traders must be cautious. The increasing ETH deposits to cryptocurrency exchange wallets hint at the possibility of a sell-off or a spike in profit-taking.

Meanwhile, the Tom DeMark (TD) Sequential indicator presents a sell signal on Ethereum’s daily chart.

  • TD Sequential Indicator: This is a technical analysis tool used to identify potential market trend exhaustion points and upcoming price reversals.
    • Setup Phase: This involves counting a series of nine consecutive price bars, where each bar closes higher (for an uptrend) or lower (for a downtrend) than the bar four periods earlier.
    • Countdown Phase: Following the setup phase, a countdown begins where a series of thirteen additional price bars are counted if they close lower (in a downtrend) or higher (in an uptrend) than the close two bars earlier.

The current green nine candlestick on the daily chart suggests that a spike in selling pressure could see Ethereum retrace for one to four daily candlesticks or even start a new downward countdown phase before the uptrend resumes.

Ethereum Price Analysis
Ethereum Price Analysis. Source: TradingView

Despite the bearish signals seen from an on-chain and technical perspective, the In/Out of the Money Around Price (IOMAP) indicator suggests that Ethereum is above significant areas of support that could hold in the event of a correction.

  • IOMAP: This metric helps analyze and visualize the distribution of holders’ positions relative to the current price. It helps understand the potential support and resistance levels based on the number of addresses holding a particular cryptocurrency at different price levels.
    • In the Money: Refers to addresses that acquired the cryptocurrency at a price lower than the current market price, indicating potential support levels as holders are likely to sell at a profit.
    • Out of the Money: Refers to addresses that acquired the cryptocurrency at a price higher than the current market price, indicating potential resistance levels as holders might want to break even or minimize losses.

Based on the IOMAP, over 1.81 million addresses bought around 1.66 million ETH between $3,820 and $3,700. This demand zone could keep Ethereum’s price at bay amid increasing selling pressure. But if it fails to hold, the next key area of support is between $3,580 and $3,462, where 3.13 million addresses purchased over 1.50 million ETH.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

Ethereum's IOMAP
Ethereum’s IOMAP. Source: IntoTheBlock

On the other hand, the most important resistance barrier for Ethereum is between $3,940 and $4,054. Here, over 1.16 million addresses had previously purchased around 574,660 ETH.

If Ethereum overcomes this hurdle and prints a daily candlestick close above $4,170, the bearish outlook will be invalidated. This could result in a new upward countdown phase toward $5,000.

Summary and Conclusions

Ethereum co-founder Jeffrey Wilke’s recent transfer of 10,000 ETH to Kraken is indicative of broader market activities, where investors are moving significant amounts of ETH to exchanges. This trend aligns with increased trading activity, suggesting potential profit-taking, portfolio rebalancing, or market speculation among Ethereum holders. The balance of ETH on exchanges has spiked, indicating a potential rise in market volatility.

This market movement comes at a critical time, as the SEC is about to make a final ruling on Vaneck’s Ethereum ETF. Analysts have noted a substantial increase in the likelihood of approval, which has surged from 25% to 75%. Such regulatory developments are seen as a positive signal for the broader cryptocurrency market, potentially paving the way for further institutional investment.

Read more: How to Buy Ethereum (ETH) and Everything You Need to Know

Despite technical indicators suggesting a possible short-term bearish trend, the IOMAP indicator shows strong support levels for Ethereum. This suggests that while there may be short-term corrections, the underlying demand for Ethereum remains robust. Long-term holders appear confident, continuing to accumulate ETH, which bodes well for its future price stability and growth.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Ethereum Price Approaches Resistance—Will It Smash Through?

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Ethereum price started a recovery wave above the $1,850 level. ETH is now consolidating and facing key hurdles near the $1,920 level.

  • Ethereum started a recovery wave above $1,820 and $1,850 levels.
  • The price is trading above $1,860 and the 100-hourly Simple Moving Average.
  • There is a connecting bullish trend line forming with support at $1,860 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair must clear the $1,900 and $1,920 resistance levels to start a decent increase.

Ethereum Price Starts Recovery

Ethereum price managed to stay above the $1,750 support zone and started a recovery wave, like Bitcoin. ETH was able to climb above the $1,820 and $1,850 resistance levels.

The bulls even pushed the price above the $1,880 resistance zone. There was a move above the 50% Fib retracement level of the downward wave from the $2,032 swing high to the $1,767 low. However, the bears are active near the $1,920 zone.

Ethereum price is now trading above $1,850 and the 100-hourly Simple Moving Average. There is also a connecting bullish trend line forming with support at $1,860 on the hourly chart of ETH/USD.

On the upside, the price seems to be facing hurdles near the $1,900 level. The next key resistance is near the $1,920 level and the 61.8% Fib retracement level of the downward wave from the $2,032 swing high to the $1,767 low.

Ethereum Price
Source: ETHUSD on TradingView.com

The first major resistance is near the $1,970 level. A clear move above the $1,970 resistance might send the price toward the $2,020 resistance. An upside break above the $2,020 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $2,050 resistance zone or even $2,120 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $1,920 resistance, it could start another decline. Initial support on the downside is near the $1,860 level and the trend line. The first major support sits near the $1,845 zone.

A clear move below the $1,845 support might push the price toward the $1,800 support. Any more losses might send the price toward the $1,765 support level in the near term. The next key support sits at $1,710.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSIThe RSI for ETH/USD is now above the 50 zone.

Major Support Level – $1,860

Major Resistance Level – $1,920



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Bitcoin Price Bounces Back—Can It Finally Break Resistance?

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Bitcoin price started a recovery wave above the $83,500 zone. BTC is now consolidating and might struggle to settle above the $85,500 zone.

  • Bitcoin started a decent recovery wave above the $83,500 zone.
  • The price is trading above $83,000 and the 100 hourly Simple moving average.
  • There is a connecting bullish trend line forming with support at $84,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start another increase if it stays above the $83,500 zone.

Bitcoin Price Starts Recovery

Bitcoin price managed to stay above the $82,000 support zone. BTC formed a base and recently started a decent recovery wave above the $82,500 resistance zone.

The bulls were able to push the price above the $83,500 and $84,200 resistance levels. The price even climbed above the $85,000 resistance. A high was formed at $85,487 and the price is now consolidating gains above the 23.6% Fib retracement level of the upward move from the $81,320 swing low to the $85,487 high.

Bitcoin price is now trading above $83,500 and the 100 hourly Simple moving average. There is also a connecting bullish trend line forming with support at $84,550 on the hourly chart of the BTC/USD pair.

Bitcoin Price
Source: BTCUSD on TradingView.com

On the upside, immediate resistance is near the $85,200 level. The first key resistance is near the $85,500 level. The next key resistance could be $85,850. A close above the $85,850 resistance might send the price further higher. In the stated case, the price could rise and test the $86,650 resistance level. Any more gains might send the price toward the $88,000 level or even $88,500.

Another Decline In BTC?

If Bitcoin fails to rise above the $85,500 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $84,500 level and the trend line. The first major support is near the $83,500 level and the 50% Fib retracement level of the upward move from the $81,320 swing low to the $85,487 high.

The next support is now near the $82,850 zone. Any more losses might send the price toward the $82,000 support in the near term. The main support sits at $80,500.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $84,500, followed by $83,500.

Major Resistance Levels – $85,200 and $85,500.



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Analyst Reveals ‘Worst Case Scenario’ With Head And Shoulders Formation

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Recent XRP price action has sparked a new prediction from a crypto analyst, as a potential Head and Shoulders pattern emerges on the chart. The analyst warns that this technical formation could trigger a significant price correction for XRP, describing this downturn as the worst-case scenario. 

Analyst Predicts XRP Price Crash To $1.15

The ‘Charting Guy,’ a pseudonymous crypto analyst on X (formerly Twitter), has unveiled a potential Head and Shoulder pattern formation on the XRP price chart. The analyst has shared insights into the implications of this technical pattern, projecting a potential crash in the XRP price

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As a well-known bearish reversal pattern, the formation of a Head and Shoulder in the XRP price chart suggests a potential shift from an uptrend to a downtrend. Typically, a Head and Shoulder pattern consists of three peaks: the Left Shoulder, Head, and Right Shoulder. However, the Charting Guy has confirmed that XRP’s current pattern formation consists of two right shoulders and one head. Due to this irregularity, the analyst has expressed doubt about the possibility of the pattern playing out. 

If the Head and Shoulder pattern eventually takes shape, it could lead to a significant drop in the XRP price, potentially bringing it down to as low as $1.15. This price level aligns with a key Fibonacci Golden Pocket retracement zone between 0.618 – 0.786.

XRP
Source: The Charting Guy on X

Notably, the analyst has described this projected price crash as the worst-case scenario for XRP. While he believes a bearish move is possible, the analyst is confident that XRP’s broader market structure is bullish.

Moreover, the Charting Guy argues that if XRP does decline to $1.15, it would likely serve as a healthy retracement in an overall bullish trend. He noted that XRP’s price has been holding the $2 level on daily closes, meaning its price action remains strong above support levels. This also indicates the possibility of an uptrend resumption that could yield higher highs and higher lows for XRP.

Key Support And Resistance Levels To Watch

The Charting Guy’s analysis of XRP’s potential Head and Shoulder pattern formation highlights several critical price levels to watch. Since XRP has consistently closed daily candles above $2, the analyst has determined this level as short-term support. 

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XRP has also been wicking during recent pullbacks in a crucial range between $1.7 and $1.9. As a result, the crypto analyst has revealed that he will be watching this area closely for a potential price bounce

The Golden Pocket retracement zone, which represents the worst-case scenario for the XRP price, is between $1.15 and $1.30. If XRP experiences a deeper price correction, lower support levels have been marked from $1.19 to $0.91.

For its resistance levels, the Charting Guy has pinpointed $2.27 as a key price point. Additionally, $3.14 – $3.32 has been identified as an upper resistance range where XRP could rally if bullish momentum resumes.

XRP
XRP trading at $2.1 on the 1D chart | Source: XRPUSDT on Tradingview.com

Featured image from Medium, chart from Tradingview.com



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