On May 6, the Ethereum Foundation transfer Nearly $30 million in ETH flowed to the Kraken exchange, leading to fears of a potential sell-off.
The top altcoin by market capitalization was down 4.8 percent on the day at $1,900, but losses so far have been negligible in a broader recovery trend.
woodEthereum price Hold key support
ETH price recovered slightly to $1,925 on May 7 after testing support around the 50-day exponential moving average (50-day EMA, red wave) at $1,850 a day earlier.
Source: TradingView
Additionally, Kraken experienced less price volatility during the aforementioned period as the Bollinger Bands narrowed in the chart below. This further shows the coolness of traders as the Ethereum Foundation moves tokens.
Notably, the 50-day moving average has capped ETH’s bearish attempts so far in 2023, preventing the early-March sell-off that pushed prices quickly below the red wave. Meanwhile, a test of the 50-day SMA as support pushed the price above $2,000.
With this support, the bulls can attempt to regain the price above $2,000 again.
Conversely, a break below the 50-day SMA could draw traders’ attention to a confluence of support, which includes a rising multi-month trendline and the 200-day SMA (green wave) near $1,700 as the next downside target. So, about 13% below today’s price.
Even with greater downside momentum, ETH will maintain its overall recovery bias when measured from the June 2022 low of $880.
booked ETH Exchange Comparison shop belong Kraken
Rising foreign exchange balances indicate that underlying selling pressure is lurking, and vice versa. In the case of ETH, balances across all exchanges remain low despite the fact that the Ethereum Foundation has transferred $30 million to Kraken.
For example, Kraken’s ETH balance increased from 1.83 million a day earlier to 1.84 million on May 6.
remaining ETH above Kraken and balance on the floor | Source: Glassnode
However, the balance across all exchanges on the day actually dropped from 18.22 million ETH to 18.15 million, suggesting that possible selling pressure from the Ethereum Foundation was easily absorbed.
not necessarily ether reach the peak market
The last major move by the Ethereum Foundation was 20,000 ETH in November 2021, when the price peaked around $4,850 and has since fallen 80%. Likewise, the platform sold 35,053 ETH in May 2021 at a local peak of around $3,500.
many analysts watch These fractals are a sign of the risk of another market top forming near $2,000 and possibly falling in the coming sessions.
But broader data suggest the opposite is the case. For example, the bulk sale of the Ethereum Foundation also occurred during the 2020-2021 bull cycle, driven by growing demand for risky assets amid a lower interest rate macro environment.
The Ethereum Foundation recently transferred a large amount of ETH to the exchange | Source: Wu Blockchain
In other words, there is little evidence that the Ethereum Foundation’s sell-off has affected ETH’s price action. Instead, the cryptocurrency market is now taking inspiration from the US banking crisis, will this force the Fed to stop raising interest rates?
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As reported by Cointelegraph
