Ethereum price analysis shows a 24-hour gain of 4.5% to hit the $2800 resistance amid market recovery. The renewed buying pressure can be attributed to Fed Chair Jerome Powell’s confidence towards colling inflation and potential interest cuts in the coming months. As Bitcoin price surged to $65000 on Friday, the ETH price challenged a key resistance to bolster further growth. Will this recovery be prolonged?
Ethereum Price Analysis: ETF Outflows and $94M Transfer Put Pressure on ETH Recovery
The Ethereum Foundation (address 0xde0) recently transferred 35000 ETH to the crypto exchange Kraken. This transfer, valued at approximately $94.07 million, hints the foundation might liquidate its assets to bear operation costs.
Typically, a major selling from institutions/whales bolsters the bearish momentum in the market, but the Ethereum price analysis signals sustainability above $2700.
According to Arkham Intelligence, the Ethereum Foundation’s address still holds substantial cryptocurrency assets, valued at $840 million, including 273.776K ETH and 31.015K WETH.
In addition, the U.S-based Ethereum ETFs (Exchange Transfer Fund) witnessed an outflow of $5.70 Million on Friday, as per the SoSoValue data. This contributed to the seven-day new outflow from spot ETF ETFs, limiting the recovery momentum in Ether coin.
ETH Price Hints Major Breakout
Ethereum price analysis showed a notable bounce from $2112 to $2760 in the last three weeks, registering a growth of 30%. The bullish reversal backed by a downtick in the Average Directional Index (ADX) indicator accentuates the diminishing bearish momentum.
If the bullish momentum persists, the ETH price could breach the $2800 resistance, bolstering a 21% rally to $3400.
According to the intothebook data, the $2800 resistance is backed by 1.08 Million ETH coins held by 1.13 Million Addresses. Therefore, if these holders decide to liquidate their assets at break even, the altcoin could witness an overhead supply. On the other hand, the large green spheres displayed on the In/Out of the Money Around Price (IOMAP) metric indicate that Ethereum price prediction sees firm support on the downside.
Conversely, the potential reversal will indicate the selling-on-rallies sentiment in the market persists, which could push the Ethereum price analysis target back to $2112.
Frequently Asked Questions (FAQs)
Fed Chair Jerome Powell’s signals of potential rate cuts in the coming months have bolstered market confidence, leading to renewed buying pressure on Ethereum.
The recent outflow of $5.70 million from U.S.-based Ethereum ETFs has limited recovery momentum. These consecutive outflows over seven days indicate investor caution.
Ethereum is currently facing resistance at the $2800 level, backed by 1.08 million ETH coins held by 1.13 million addresses
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/ethereum-price-analysis-3000-foundation-35k-eth/
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