Ethereum Foundation’s ETH Outflows Trigger Market Reaction
The Ethereum Foundation, a non-profit organization supporting the development of the Ethereum blockchain, has been observed selling ETH coins from insider-controlled wallets. This has led to market reactions as prices reached local peaks. On October 9, a wallet address linked to the Ethereum Foundation moved 1,700 ETH worth $2.73 million into the Kraken exchange. Historical data shows that previous outflows from the foundation have coincided with price drops in Ethereum. The recent outflow transaction caused a 2% drop in ETH price below the $1,600 support level.
Ethereum Exchange Netflows Indicate Bearish Sentiment
Data on ETH exchange netflows indicates a growing bearish sentiment within the Ethereum ecosystem. Just days before the Ethereum foundation’s outflow, ETH inflows into exchanges exceeded outflows by a significant margin. This suggests that many holders are looking to liquidate their positions in the short term, potentially putting downward pressure on Ethereum’s price. If these trends persist, it is likely that ETH will retest the $1,500 level in the coming weeks.
All Eyes on $1,500 Support for Ethereum Price
While there is visible bearish activity among Ethereum insiders and retail market participants, the Global In/Out of Money Around Price (GIOM) data shows significant support clusters around current prices. Large holders who bought at higher prices are expected to fend off bearish pressure. However, bears may prevent a major price rally towards $2,000. It remains to be seen if Ethereum can break through this resistance and move closer to $2,000.
Hot Take: Will ETH Price Rebound or Sink Further?
The recent outflows from insider-controlled wallets linked to the Ethereum Foundation have raised concerns about a prolonged bearish price reversal for ETH. If history repeats itself, the price could sink towards $1,500 in the weeks ahead. However, the presence of significant support clusters and large holders who can defend against bearish pressure may provide some resilience for Ethereum. The next crucial milestone is breaking through the resistance at $2,000. The outcome will determine whether ETH can rebound or sink further.
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