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Can Ethereum (ETH) Ascend Higher Despite Massive Transfers?

Published 11/02/2024, 13:38
Updated 11/02/2024, 13:45
© Reuters Can Ethereum (ETH) Ascend Higher Despite Massive Transfers?
ETH/USD
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COIN
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Coin Edition -

  • Ethereum’s co-founder and another whale offload millions of ETH.
  • A break through the $2,550 resistance might send ETH to $2,715.
  • If bears halt the bullish setup, ETH’s price might pull back below $2,300.

Ethereum (ETH) could be on the verge of a significant decrease if recent events eventually impact the price. On February 10, Lookonchain confirmed that co-founder of Ethereum Jeffrey Wilcke transferred 4,300 ETH, valued at $10.7 million to the crypto exchange Kraken.

Whenever a large volume of cryptocurrency is sent into an exchange, it usually means the participant involved is ready to sell. The incident sparked discussion among market watchers and investors who wondered why a founding member of the project would decide to offload at this time.

Whale Joins the Party

In November 2023, Coin Edition reported how Vitalik Buterin, another co-founder sold 100 ETH. At that time, ETH’s price was $1,800. But a few days later, the price jumped above $2,000, CoinMarketCap data revealed.

ETH 365-Day Performance (Source: CoinMarketCap)

This time, Wilcke was only one of many parties involved in selling ETH. According to whale tracking platform ‘Whale Alert’, a certain whale sent 13,771 ETH to Coinbase (NASDAQ:COIN), confirming an increase in exchange inflow.

Despite the transfers, ETH’s price has remained solid and was trading at $2,532 at press time. The 4-hour ETH/USD revealed that the cryptocurrency ended the week on a high note. ETH broke and closed above the $2,391 resistance.

Bulls Eye Another Rise

Currently, the market structure shows that there could be a clear path to $2,700 which would mark a yearly high for ETH. But first, bulls must break through $2,550 where bears are expected to display a strong defense.

If the bullish set-up helps ETH clear the level, the price might surge past $2,700. On the other hand, a rejection might force ETH back to $2,275. In terms of the Exponential Moving Average (EMA), the 4-hour chart showed that the 20 EMA (blue) had crossed over the 50 EMA (yellow).

At press time, the 20 EMA was at $2,478 while the 50 EMA was at $2,416. This crossover suggests a bullish trend. Should ETH’s price remain above both EMAs, the value of the cryptocurrency might ascend higher.

ETH/USD 4-Hour Chart (Source: TradingView)

In a highly bullish case, ETH might head to $2,715. But for the altcoin to hit the price, buying pressure has to be aggressive. Should this happen, a cascade of short liquidations could take place.

However, if bears successfully halt the bullish momentum, ETH might drop below $2,300. In the meantime, buyers are in control of the price action, and the cryptocurrency might hit a higher level in the short term.

The post Can Ethereum (ETH) Ascend Higher Despite Massive Transfers? appeared first on Coin Edition.

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