Sunday, March 3, 2024

Ethereum sell-off fears rise as crypto hedge fund moves $60M ETH to an exchange


Ethereum’s native token Ether (ETH) rose by greater than 5% to attain its intraday excessive above $1,930 on Could 30. Nonetheless, the ETH/USD pair dangers dealing with one other sell-off spherical due to issues a couple of large ETH influx into an exchange.

58.7K Ether transferred to FTX in Could

On Could 30, the Ether deal with allegedly related to Three Arrow Capital — a Singapore-based crypto hedge fund, despatched 32,000 ETH price $60 million to the FTX crypto exchange inside a span of an hour, on-chain information exhibits.

The majority switch, which follows the fund’s 26,700 ETH deposit to the identical exchange earlier in Could, raised suspicions that it could dump the Ether stash. That’s primarily as a result of, in concept, buyers switch crypto to their exchange wallets solely when they need to promote them for different belongings.

Nonetheless, the variety of Ether held by exchanges continued to drop in Could, in accordance to on-chain information tracked by Glassnode.

The ETH stability throughout all of the crypto exchanges dropped from 20.45 million to 20.38 million month-to-date (MTD), underscoring that buyers are holding their investments for the long run.

Ethereum balances on exchanges. Supply: Glassnode

ETH rebound weakens

Three Arrow’s large Ether switch to FTX coincides with ETH testing a crucial support-turned-resistance degree close to $1,920 for a breakout, as proven beneath.

ETH/USD four-hour worth chart. Supply: TradingView

Concurrently, Ether’s relative power index is close to its “overbought” threshold of 70, which as a rule of technical evaluation tends to precede a sell-off. In different phrases, ETH may consolidate round $1,920 within the coming days earlier than pulling again to its rising trendline help close to $1,850.

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Conversely, a decisive transfer above the $1,920-level, accompanied by a rise in buying and selling volumes, may set off a long-term upside setup shared by “Wolf,” a pseudonymous market analyst, as proven beneath.

ETH/USD weekly worth chart. Supply: Wolf/TradingView

The setup showcases the degrees round $1,820 as help in a so-called accumulation vary, with $4,000 serving as resistance on the opposite finish. Wolf famous that the worth may rally towards $4,000 “a couple of months from the Merge,” a highly-awaited improve that may make Ethereum a proof-of-stake protocol.

The views and opinions expressed listed below are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer includes threat, you need to conduct your individual analysis when making a choice.