Ethereum price analysis shows a 24-hour increase of 4.5% and it reached the $2800 resistance as the market recovers. The renewed buying pressure comes on the back of Fed Chair Jerome Powell’s confidence in falling inflation and possible rate cuts in the coming months. As Bitcoin price surged to $65,000 on Friday, ETH price challenged a key resistance to encourage further growth. Will this recovery continue?
Ethereum Price Analysis: ETF outflows and $94 million transfer put pressure on ETH recovery
The Ethereum Foundation (address 0xde0) recently transferred 35,000 ETH to the crypto exchange Kraken. This transfer, worth about $94.07 million, suggests that the foundation may be liquidating its assets to cover operating costs.
Usually, a major sell-off by institutions/whales increases the bearish momentum in the market, however, Ethereum price analysis signals sustainability above $2,700.
According to Arkham Intelligence, the Ethereum Foundation address still contains significant cryptocurrency assets worth $840 million, including 273,776,000 ETH and 31,015,000 WETH.
Additionally, the US-based Ethereum ETFs (Exchange Transfer Fund) recorded an outflow of $5.70 million on Friday, according to SoSoValue data. This contributed to the seven-day fresh outflow from spot ETFs and limited the Ether coin’s recovery momentum.
ETH price hints at major breakout
Ethereum price analysis revealed a significant jump from $2112 to $2760 in the last three weeks, representing a growth of 30%. The bullish reversal supported by a downtrend in the Average Directional Index (ADX) indicator highlights the decreasing bearish momentum.
If the upside momentum continues, ETH price could break the $2,800 resistance level and support a 21% increase to $3,400.
According to data from intothebook, the $2800 resistance is supported by 1.08 million ETH coins held by 1.13 million addresses, so if these holders decide to liquidate their assets at breakeven, the altcoin could experience oversupply. On the other hand, the large green balls displayed on the IOMAP (In/Out of the Money Around Price) metric suggest that the Ethereum price prediction is facing firm support on the downside.
Conversely, the possible reversal will be an indication that the selling sentiment in the market continues, which could push Ether higher.EUM price analysis target again at $2112.
Frequently Asked Questions (FAQs)
Fed Chairman Jerome Powell’s signals regarding possible interest rate cuts in the coming months have boosted market confidence and led to renewed buying pressure on Ethereum.
The recent outflow of $5.70 million from US-based Ethereum ETFs has limited the recovery momentum. These consecutive outflows over seven days indicate investor caution.
Ethereum is currently facing resistance at $2,800, supported 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. 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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