Is Ethereum Facing a Price Dump?
If you’re holding Ethereum (ETH), you might want to brace yourself for a potential price dump. Recent data shows that a massive amount of ETH, around 300,000 coins worth almost $500 million, has been transferred from two cold wallets to the popular crypto exchange Coinbase.
While the reasons behind these transfers are unknown, it’s worth noting that such a large on-chain transaction spike hasn’t been seen since June. However, it’s uncertain whether these moves will have any impact on the price of Ethereum.
As of now, Ethereum’s price has been quite volatile, currently down 1.19% and trading at $1,619. The technical chart also indicates weakness for Ethereum, with the price dropping below key moving averages.
Ethereum Price Analysis
After a decline from the critical $1.8K resistance level, Ethereum found support around $1.6K. This support zone is significant as it aligns with the 61.6% Fibonacci retracement level, indicating a strong level of support. However, if the price falls below $1.6K, it could signal a bearish downturn.
On-chain data also suggests a bearish sentiment for Ethereum, with the buy-sell ratio on a downward trajectory. If the ratio continues to drop and Ethereum falls below $1,600, we could see a deeper correction and the possibility of Ethereum touching $1,000.
One potential positive catalyst is the approval of the Ethereum Futures ETF, which seems likely. If the US SEC gives the green light, it could provide a boost to Ethereum’s price.
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