Key Takeaways
- In the past 48 hours, a giant Ethereum whale sold 30,000 ETH, which were valued at $138.4 million on Bitfinex.
- Even as its market capitalization dropped to $564.81 billion, Ethereum recorded a four-day trading volume of $45.32 billion.
- ETH bulls are holding above $4,600 at a positive ‘Golden Cross’ signal on the four-hour chart.
A large Ethereum whale has recently caused a stir in the market on account of dumping a huge ETH reserve on Bitfinex. The transaction now casts uncertainty on whether there is price pressure in the market despite the generally optimistic technical trends.
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Ethereum Whale Dumps 15000 ETH To Exchange
Spot On Chain, the on-chain analytics company, reported that the whale had deposited 15,000 ETH worth around $70.15 million into Bitfinex some three hours ago. This follows two days of selling, during which the same entity is said to have sold a total of 30,000 ETH, valued at approximately $138.4 million at an average price of $4,612.
Besides that, the whale transferred 23,278 ETH to two new wallets ($109.3 million). The organization currently has 70,785 ETH, which is worth approximately $332.4 million, divided into four wallets.
Mass movements of such whales have a rippling effect on the market because the deposits of exchange are usually sudden and often linked with either a possible sell-off or a rebalancing of the portfolio. This may cause a short-term negative effect on the prices, but Ethereum has proven to be stronger than that.
When this piece was written, Ethereum was trading close to $4,680, which is its highest point in three weeks, and it had had a short pause after a two-day surge. Nevertheless, the price of the cryptocurrency has proved itself to be strong above the critical technical levels even amidst the slowdown.
According to Santiment data, Ethereum has a record-breaking daily trading volume of a record-breaking $45.32 billion, particularly on the day when the market capitalization would deteriorate compared to a 3-week high of $564.81 billion. The market cap pullback has failed to undermine the bullish feeling that is announced by prominent indicators.
What’s Next For ETH Price?
Technically, Ethereum has just left a seven-week-long bearish trend, with the Directional Movement Index (DMI) and the Moving Average Convergence Divergence (MACD) pointing to favorable outcomes. The Upmove (D+) line of the DMI is not crossed by the Downmove (D-) and ADX line, which indicates the high upward momentum.
The major resistance is in the range of $4,768 to $4,830, a range that has limited gains over almost two months. Provided that Ethereum can overcome this range, there can be further targets based on the former all-time high of $4,955, then $5,000. To the far, Fibonacci extension levels of $5,260 and $5,600 may come into play.
The short-term support is seen at the levels of $4,555 and more substantive cushions at the 50-day and 100-day Simple Moving Averages (SMAs), which are at $4,400 and $3,960, respectively. Ethereum has painted itself a Golden Cross in the four-hour chart, with the 50-bar SMA breaking through the 200-bar SMA, which is commonly associated with a bullish continuation.
SMAs of shorter-term, such as $4,417 and $4,366, are also critical support areas of the market in the short run, as the market digests the recent whale activity and the trading momentum starts to stabilize.
Read More: Why is Crypto Market Up Today? Bitcoin, Ether, XRP See Strong Rally
