ETH price seeks bottom with bulls-eye $5,000 target.
recent approval The filing of an Ethereum ETF with the U.S. Securities and Exchange Commission (SEC) on Thursday has sparked speculation about the next price move for the market’s second-largest cryptocurrency as its trading start date approaches.
However, significant transfers of Ethereum (ETH) to cryptocurrency exchanges have raised concerns about profit taking, portfolio rebalancing, and potential market speculation.
Sell Ethereum ETF Greenlight?
Depending on the For cryptocurrency analyst Ali Martinez, this development coincides with Ethereum founder Jeffrey Wilke transferring 10,000 ETH, worth about $37.38 million, to cryptocurrency exchange Kraken.
Moreover, the surge in Ethereum balances on cryptocurrency exchanges means a noticeable increase in the number of tokens available for sale.
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The chart below shows that over 242,000 ETH was transferred. cryptocurrency exchange Wallets have fallen over the past two weeks, a sign of increased trading activity that could be contributing to price volatility.
This trend, combined with Wilke’s transfer, suggests the potential for increased selling or profit-taking among market participants.
Industry experts like Anthony Pompliano see the approval of the Ethereum ETF as a positive sign for the entire industry, but traders should exercise caution. For Martinez, the number of ETH deposits is increasing. wallet exchange This refers to a potential market reaction characterized by profit taking or selling pressure.
The analyst also notes that the Tom DeMark (TD) sequential indicator has put up a sell signal on the Ethereum daily chart, indicating the possibility of a retracement or a new downside countdown phase before the uptrend resumes.
Focus on Ethereum price outlook
Martinez emphasizes that Ethereum is strong, conducting a price analysis that takes into account Input-Output Model and Profitability (IOMAP) data. Demand area Between $3,820 and $3,700, over 1.81 million addresses purchased approximately 1.66 million ETH.
This range could provide support amid increasing selling pressure. However, if this area does not hold, the next major support area is between $3,580 and $3,462, with 3.13 million addresses gaining over 1.5 million ETH.
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On the positive side, Ethereum’s most important resistance barrier is between $3,940 and $4,054, with over 1.16 million addresses being bought. Approximately 574,660 ETH.
Martinez suggests that if the daily candle closes above $4,170, the bearish outlook will be invalidated and a new upward countdown phase will begin, potentially targeting $5,000.
As of this writing, the price of ETH is $3,719, reflecting a 2.5% retracement over the last 24 hours. However, according to analyst assessments, Ethereum is still within a critical demand zone.
As the market approaches the launch and start of trading of eight spot Ethereum ETF applications from the world’s largest asset managers, the exact impact on price action is yet to be fully realized.
Featured image from Shutterstock, chart from TradingView.com
