Ethereum price recorded a slight increase of 1.26% to $2654 during Friday’s trading session. The relief from the mid-week sell-off has strengthened Bitcoin price and brought it back to $60,000, while also sparking a fresh relief rally in the altcoin market. The rising ETH price is heading towards $2750 resistance, a crucial zone that could support a fresh recovery and continue the prevailing correction.
Ethereum price holds key support despite large ETH transfer to exchange
According to blockchain data from Arkham Intelligence, a Gnosis Safe proxy address associated with Metalpha recently transferred a whopping 10,000 ETH worth $26.02 million to Binance.
During the transaction, Ethereum price remained stable above $2,600 while the market capitalization stood at $315.5 billion.
Metalpla, an asset management company affiliated with Bitmain, the largest Bitcoin mining company, had previously requested the withdrawal of 10,000 ETH from Lido. This transaction underscores Metalpla’s active role in managing sizeable cryptocurrency assets, possibly in preparation for strategic financial maneuvers within the market.
ETH price fluctuates at pivot point
Over the past two weeks, the crypto market has witnessed a recovery rally after the aggressive correction in July. The bullish turn saw the Ethereum price rise from $2111 to $2620, representing a growth of 24%.
The rising price is likely to challenge the downtrend line at $2750, which previously acted as a key support during the market consolidation. From March to early August, the Ethereum price prediction showed a sideways movement, fluctuating between two parallel trends of rectangle patterns.
The sideways trend at a notable high indicates the distribution phase – the stage in the market cycle when large investors gradually sell their positions to retail investors.
Therefore, a retest of the ETH price range of $2750-$2775 could restore selling pressure and extend the market decline. A recent death crossover between the 50-day and 200-day EMA supports the bearish forecast.
The potential will see the asset plunge 19% to $2,127, while a further dip could lead to a retest of the $1,900 support.
On the contrary, Ethereum has overcome the 61.8% Fibonacci retracement level, which is often seen as a healthy correction for buyers to regain bullish momentum. Moreover, the ADX indicator at 39% high highlights that sellers have led an extended rally, which often attracts buyers who enter the market after price declines.
A potential breakout from the overhead resistance would therefore secure strong support and weaken the bearish thesis. The post-breakout rally could propel the asset over 20% to a target of $3,400.
Frequently Asked Questions (FAQs)
The recent death cross, where the 50-day EMA falls below the 200-day EMA, suggests a bearish forecast for Ethereum. This technical indicator often signals a possible decline
A bullish breakout above the $2,750 resistance level could give Ethereum a fresh boost and potentially push the price above $3,500.
The key levels to watch are the resistance at $2750 and the support at $2127. A breakout above $2750 could start an upward move and push the price towards $3400.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Equipped with a strong understanding of technical analysis, he keeps an eye on the daily price movements of major assets and indices. Attracted by his fascination with financial instruments, Sahil has enthusiastically turned to the emerging space of cryptocurrencies, where he continues to explore opportunities fueled by his passion for trading.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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