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Ethereum Foundation Dumps 35K ETH, ETH Price Plunges 12%, Recovery Ahead?

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Ethereum price saw a strong selloff on August 27 in the late US session and was in line with broader crypto market corrections. One key aspect that stood out for ETH investors is the August 23 transfer of 35,000 ETH from the Ethereum Foundation. This is not the first time the entity behind Ether has transferred and sold ETH from its holdings. Every time such a transfer was noted, Ethereum price suffered a fatal crash.

 

Ethereum Foundation’s Sell Signal Record

On August 23, the Ethereum Foundation’s balance dropped from 309,000 ETH to 274,00 ETH. Data from Arkham Intelligence showed that the 35,000 ETH was transferred to Kraken. Every time the entity sells ETH, it has a vivid impact on the price of Ether. Crypto investors consider the foundation’s transfers a top or sell signal as the Ethereum price often crashes, forming a local top.

The August 23 transfer resulted in a 14.51% crash in Ethereum price in the next five days.

Ethereum Foundation Transfer vs. ETH priceEthereum Foundation Transfer vs. ETH price
Ethereum Foundation Transfer vs. ETH price

Historically, this outlook has remained true. For example, the May 6, 2023, transfer of 15,000 ETH worth nearly $30 million triggered a 16% plummet after a month and a 24% crash in the next three months. 

Ethereum Foundation currently holds 274,000 ETH worth $675 million. ETH price has bounced nearly 4% from the August 27 bottom of $2,392 and shows promise of a further recovery if Bitcoin manages to recover above the $60,000 psychological level. 

Ethereum Price Analysis: ETH Short-Term Recovery Rally on the Cards

Ethereum price has cleared the sell-side liquidity below the swing lows formed after August 12. This development, called rinsing, is often seen in the crypto futures markets, where prices drop before triggering a bullish move. With that in mind, investors can expect the recovery rally from Ether to be strong. 

One condition for this bounce is Bitcoin’s strength. If BTC price reflects bullish momentum and flips the $60,000 key level into a support floor, it would suggest the start of a recovery rally for not just ETH but also the rest of the crypto markets.

Such a development could see Ethereum price forecast hint at a revisit the $2,618 hurdle that was recently flipped into a resistance level.

ETH/USDT 4-hour chartETH/USDT 4-hour chart
ETH/USDT 4-hour chart

Adding credence to this outlook is the recent uptick in whale transactions worth $1,000,000 or more. These transfers serve as a proxy of institutional investors, and when these transactions occur after a price drop, they often correlate to dip-buying opportunities. More often than not, if this metric spikes after a brutal selloff, it is proceeded by quick price reversals.

Ethereum price vs Whale Transaction CountEthereum price vs Whale Transaction Count
Ethereum price vs Whale Transaction Count

On the other hand, if Etheruem price fails to recover, it could crash another 11% before it encounters a key support level of $2,190. 

Frequently Asked Questions (FAQs)

The Ethereum Foundation’s transfer of 35,000 ETH on August 23 is one of the reasons for the recent ETH price drop.

The ETH price plummeted nearly 12% from a high of $2,699 to $2,387.

Previous transfers from Ethereum Foundation have catalyzed double-digit crashes that have lasted up to three months.

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Akash Girimath

Akash Girimath is an engineer at core, but is interested in the chaos of the financial markets. Akash is senior report and analyst who also trades cryptos on a regular basis and maintains a small crypto fund for friends and family.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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No ATH for Ethereum Price? ETH Whale Selling Persists Amid Election Boost

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During Wednesday’s trading session, the cryptocurrency market witnessed a surge in buying pressure as Donald Trump secured his victory as the 47th U.S. President. The pioneer cryptocurrency, Bitcoin, surged 8.8% to a new high of $75,400, boosting recovery in the altcoin market. However, the Ethereum price could struggle to hit new ATH as crypto whale continues to offload ETH.

By press time, the ETH price trades at $2,647 with an intraday gain of 9.89%. According to Coingecko, Ether’s marketcap holds at $319.2 Billion, and 24-hour trading volume is at $38.169 Billion.

Ethereum Price ATH Delayed? Whale Sales Overshadow Election Momentum

On November 6th, the cryptocurrency market experienced a significant rally as Donald Trump secured the necessary 270 electoral votes to become the 47th President of the United States. Amid this rally, a crypto whale who received 150,000 ETH through the ICO recently transferred a substantial 25,000 ETH (worth approximately $65.63 Million) to Kraken at an average price of $2,625.

According to Lookonchain, this whale has sold a total of 90,000 ETH of the 150,000 coins at an average value of $2,527 (worth around $227.45M). 

Breakdown of the Whale’s ETH Sales: 

  • July 2019: Sold 5,000 ETH at $218 ($1.09M).
  • June 2024: Sold 10,000 ETH at $3,539 ($35.39M).
  • September–October 2024: Sold 50,000 ETH at $2,516 ($125.34M).
  • November 2024: Sold 25,000 ETH at $2,625 ($65.63M).

Historically, whale selling has coincided with major market tops and spurred a bearish sentiment in the market. Amid the supply pressure, the Ethereum price could witness a stalled recovery momentum and struggle to hit a new All-time-high.

ETH Chart Analysis Shows Porlong Consolidation Within Triangle

Over the past three months, the Ethereum price prediction has traded sideways, resonating within a symmetrical triangle pattern. The price action strictly resonated within two converging trendlines, indicating a lack of dominance from buyers or sellers.

With a massive green candle today, the ETH price is at $2,661, still consolidating within the triangle and 3% away from a major breakout. If the sellers continue to defend this resistance, the Ether price will revert again and prolong its sideways trend.

Ethereum PriceEthereum Price
ETH/USD- 1d Chart

Therefore, a potential breakout from overhead resistance is necessary for buyers to regain control over the asset. If the ETH price surpasses the dynamic with the daily candle closing, the bullish momentum will accelerate to drive a surge above $3,500.

Frequently Asked Questions (FAQs)

Ethereum’s price recovery has been limited due to persistent selling by crypto whales

Following Trump’s election as the 47th U.S. President, the crypto market saw a rally, with Bitcoin hitting $75,400 and Ethereum gaining 9.89%, trading at $2,647

The symmetrical triangle pattern indicates consolidation, with ETH price oscillating between two converging trendlines. An upside breakout from this pattern is essential for buyers to regain control and push ETH towards the $3,500 mark or higher.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Risk-To-Reward on Ethereum Looking ‘Too Good To Pass Up’ According to Crypto Analyst – Here’s Why

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A popular on-chain strategist says Ethereum (ETH) is showing a great risk-reward ratio setup.

Analyst Ali Martinez tells his 76,900 followers on the social media platform X that ETH appears to be forming a bullish ascending channel on the weekly timeframe.

“The risk-to-reward ratio on Ethereum is too good to pass up for a long position! I’ve set my stop below $1,880 and am aiming for a target of $6,000.”

Image
Source: Ali Martinez/X

Looking at his chart, the analyst suggests ETH is holding the bottom trend line of the ascending channel as support and could soon re-test the upper bound at around $6,100.

However, fellow crypto trader Benjamin Cowen tells his 819,000 YouTube subscribers that based on a historic pattern of Ethereum bottoming out during the fourth quarter, he’s anticipating ETH drops to its logarithmic trendline, potentially as low as $1,000.

“When I look at the cycle, I see ETH at $2,400 and I just think that there is a really high probability that within a couple of months, probably in less than two months, we will look back at this and see that Ethereum finally went home and it took until Q4 of 2024 to do so…

In 2016, you can see that Ethereum finally entered the lower logarithmic correction trendline in basically early to mid-November. In 2019, it entered it in August but then it got back above it and then didn’t really durably stay in it until almost late September and October.”

ETH is trading for $2,409 at time of writing, down 2.1% in the last 24 hours.

Next up, the analyst says that Dogecoin (DOGE) is signaling a bullish reversal on the TD Sequential indicator, which traders use to predict potential trend reversals for tokens based on the closing prices of their previous nine or 13 bars or candles.

“The TD Sequential indicator has flashed a buy signal on the Dogecoin four-hour chart! If DOGE holds above the $0.141 support, we could see a rebound to $0.162.”

Image
Source: Ali Martinez/X

He also suggests that if DOGE flips the $0.169 level into support, the next resistance level would be in sight.

“If Dogecoin DOGE breaks above the $0.169 resistance, we could see a 27% rally up to $0.209!”

Image
Source: Ali Martinez/X

DOGE is trading for $0.162 at time of writing, up 7.4% in the last 24 hours.

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Is Ethereum Price a VC Pump and Dump?

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Ethereum (ETH) price has experienced a period of consolidation after recent gains, with a decline pushing it below the $2,550 support level. While ETH faces resistance of nearly $2,500, it holds the potential for recovery if it clears this key barrier.  Analysts suggest possible volatility ahead, with forecasts hinting at potential pump-and-dump dynamics driven by venture capital influences.

Analyst Suggests Ethereum Price a VC Pump and Dump

Crypto analyst tweeted a controversial perspective on Ethereum’s long-term trajectory, raising questions within the cryptocurrency community. The tweet posits that Ethereum’s significant growth might be attributed to a venture capital (VC) pump-and-dump scheme, sparking debate about the network’s stability and future.

The analyst highlighted a possible downward trend. Ethereum’s price movement appears to follow a channel, indicating consistent support and resistance. However, a sharp drop in the projection suggests potential risks.

Is Ethereum Price a VC Pump and Dump?Is Ethereum Price a VC Pump and Dump?
Source- X

Crypto Expert Warns of Ethereum’s Instability

The crypto expert issued a cautionary note regarding Ethereum’s current market position. Beamish expressed concern over Ethereum’s chart patterns, suggesting potential instability. With market factors like the upcoming election adding unpredictability, he noted Ethereum appears “teetering on the edge,” raising questions about its immediate trajectory.

Analysis points to a volatile period for the top coin as it hovers near critical support levels. He highlighted Ethereum’s delicate positioning, which could influence traders weighing whether to hold or exit their positions. In his words, Ethereum is at a crossroads, posing a dilemma: “do I jump? Do I jump?”

Will ETH Price Rebound To $3000 In November?

At the time of writing, the Latest ETH price is hovering at $2,469, with a slight surge over the past 24-hours. Ethereum is positioning itself near crucial resistance levels, with the potential for a significant price movement. A clear push above the $2,550 resistance could drive ETH toward $2,600, while an upward breakout past $2,800 might further fuel gains. If successful, this momentum could lead Ethereum closer to the $3,000 resistance mark, appealing to bullish investors eyeing a rally.

However, if the Ethereum price prediction fails to surpass the $2,500 resistance, it risks a downturn. Initial support sits around $2,450, with more substantial support at $2,400. A decisive break below $2,400 could heighten selling pressure, potentially pulling the price to $2,350 as traders look to these levels for a bounce or further decline.

Is Ethereum Price a VC Pump and Dump?Is Ethereum Price a VC Pump and Dump?
Ethereum Price Chart: TradingView

Approximately 76.09% of Ethereum addresses are “In the Money,” covering a value range of up to $2,406.82. On the other hand, 20.91% are “Out of the Money,” indicating potential losses for holders who bought above $2,499.15. Only 3% of addresses remain “At the Money,” meaning they break even at current prices.

Is Ethereum Price a VC Pump and Dump?Is Ethereum Price a VC Pump and Dump?
Source: IntoTheBlock

Ethereum’s near-term direction remains uncertain, with resistance levels, VC speculation, and market conditions shaping the price outlook for this leading cryptocurrency.

Frequently Asked Questions (FAQs)

A VC pump-and-dump scheme implies that venture capitalists may artificially inflate Ethereum’s price and then sell, causing potential price drops.

Ethereum could rebound if it clears the $2,500 resistance, which could pave the way for gains towards $2,600 and potentially $3,000.

The upcoming election could introduce additional market unpredictability, impacting investor sentiment and Ethereum’s price movement.

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Coingape Staff

CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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