The Crypto Market Volatility Intensifies as Ethereum Price Extends Breakout
The volatility in the crypto market has intensified since last week, with bulls being on the offensive. Ethereum price extended the breakout above $2,000 reaching highs at $2,300 on Monday alongside the Bitcoin price rally above $44,000.
Galaxy Digital Transfers to Binance Hold Potential Impact on Ethereum Price Rally
Blockchain data monitoring company Lookonchain highlighted that Galaxy Digital, one of the leading digital fund managers in the industry, had transferred 9,179 ETH to Binance exchange.
According to an image from Etherscan shared on X (Twitter), Galaxy Digital made three transactions comprising 3,079, 3,100, and 3,000 ETH with a combined dollar exchange value of $20.9 million.
Galaxy Digital still holds 10,038 ETH worth approximately $22.8 million. Since the transfers to Binance could dampen the uptrend and push ETH price down, traders must plan accordingly and be alert to avoid falling into a bull trap.
Ethereum’s Potential for a Springboard at $2,200 Support
For now, there is a high probability Ethereum will springboard from support at $2,200. Several indicators reinforce the bullish theory starting with the fact that ETH holds above all three MAs—the 21-day Exponential Moving Average (EMA), the 50-day EMA, and the 200-day EMA.
Despite the resistance at $2,300, Ethereum’s position above the Ichimoku Cloud is a significant bullish signal. While traders may be uncertain whether they should buy now or wait for a bigger correction, chances seem to be high that dips would be profitable. Besides, bull markets tend to have trend reversals which allow other sidelined investors to buy into ETH ahead of the next potential breakout.
That said, it would be prudent to wait until Ethereum resumes the uptrend either from higher support at $2,250 or the grey region marked on the chart before entering new long positions, considering the Relative Strength Index (RSI) is falling back into the neutral area.
FOMO could kick in as Ethereum price blasts through the resistance marked in red at $2,300. A sustained breakout would assure investors of the next major move to $2,500 and subsequently to $3,000.
Hot Take: The Impact of Galaxy Digital’s Transfers on Ethereum’s Price Rally
The recent transfers of Ethereum by Galaxy Digital to Binance have raised concerns about the potential impact on Ethereum’s ongoing price rally. With 10,038 ETH still held by Galaxy Digital, traders must stay vigilant and plan accordingly to avoid a possible downturn in ETH price. However, with strong support at $2,200 and bullish indicators such as holding above key moving averages and position above the Ichimoku Cloud, there is still potential for Ethereum to rebound and continue its upward trend. It is advisable to wait for confirmation of the uptrend before entering new long positions.
By
By
By
By
By