Ethereum Price Holds Steady Amidst Concerns Over Large Transfers to Exchanges
The price of Ethereum (ETH) has remained relatively stable this week, despite worries surrounding a significant transfer of the leading smart contracts token to a major exchange. With a 3% gain over the past week, ETH is currently trading at $1,634 on Wednesday. Bitcoin has also experienced positive growth, rising by 5% to reach $27,156.
Investors in the crypto market are eagerly awaiting the decision on the September monetary policy from the Federal Open Market Committee (FOMC) meeting. The market has shown resilience against interest rate hikes in recent months, and investors are likely to maintain a positive outlook regardless of the outcome of the meeting.
The Potential for Ethereum Price to Rally to $3,325
Ethereum price bulls face a key obstacle between $1,650 and $1,700. If they can successfully break through and hold these levels, it would confirm a breakout to $1,800 and trigger a buying spree with potential gains surpassing $2,000. The current weekly chart shows that ETH is sitting above the 200-weekly Exponential Moving Average (EMA) at $1,626, which is a bullish market indicator.
To launch Ethereum price into the anticipated rally, it will require collective effort from the bulls to defend support at $1,600 and regain control of the 21-weekly EMA and 100-weekly EMA. If these three moving averages serve as support, there is potential for a larger breakout above an ascending triangle pattern.
A breakout from this pattern would occur if ETH price surpasses resistance at $2,100 with increased volume, indicating strong buying pressure.
The target for this breakout is an increase of 58% to $3,325, which is equivalent to the height of the triangle pattern above the breakout point. Some traders may wait for confirmation from the Moving Average Convergence Divergence (MACD) indicator before entering a buy position.
Influx of ETH to Exchanges Raises Speculation
On-chain transaction trackers have observed a trend where large holders, known as whales, are sending significant amounts of Ethereum to exchanges. Approximately $60 million worth of ETH has been transferred from dormant wallets to exchange platforms, causing concerns about its potential impact on price.
Ethereum co-founder Vitalik Buterin recently transferred 300 ETH worth approximately $492,000 to the Kraken exchange. While this single transaction may not have a major impact on ETH price, it has sparked discussions within the community due to Buterin’s influential position.
Another notable transfer worth around $50 million was deposited into several exchanges including OKX, Binance, and KuCoin over the past five days. These transfers to exchanges often indicate that investors are preparing to sell their holdings, leading to speculation about the market’s direction.
Hot Take: Ethereum Price Remains Steady Amidst Transfer Speculation
Despite concerns over large transfers of Ethereum to exchanges by whales, the price of ETH has held steady this week. With positive growth in both Ethereum and Bitcoin, investors in the crypto market maintain a positive outlook regardless of potential interest rate hikes. The key obstacle for Ethereum price is breaking through resistance levels between $1,650 and $1,700. If successful, a rally could ensue with a target price of $3,325. However, the recent influx of ETH to exchanges has raised speculation about potential selling pressure. Traders should closely monitor market indicators such as moving averages and volume for confirmation of price movements.
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