Ethereum sell-off fears rise as crypto hedge fund moves $60M ETH to an exchange

Ethereum’s native token Ether (ETH) rose by greater than 5% to succeed in its intraday excessive above $1,930 on Might 30. Nonetheless, the ETH/USD pair dangers going through one other sell-off spherical resulting from issues a couple of huge ETH influx into an change.

58.7K Ether transferred to FTX in Might

On Might 30, the Ether handle allegedly related to Three Arrow Capital — a Singapore-based crypto hedge fund, despatched 32,000 ETH price $60 million to the FTX crypto change inside a span of an hour, on-chain information exhibits.

The majority switch, which follows the fund’s 26,700 ETH deposit to the identical change earlier in Might, raised suspicions that it might dump the Ether stash. That’s primarily as a result of, in principle, traders switch crypto to their change wallets solely after they wish to promote them for different property. 

Nonetheless, the variety of Ether held by exchanges continued to drop in Might, based on on-chain information tracked by Glassnode.

The ETH steadiness throughout all of the crypto exchanges dropped from 20.45 million to twenty.38 million month-to-date (MTD), underscoring that traders are holding their investments for the long run. 

Ethereum steadiness on exchanges. Supply: Glassnode

ETH rebound weakens

Three Arrow’s huge Ether switch to FTX coincides with ETH testing a vital support-turned-resistance stage close to $1,920 for a breakout, as proven beneath.

ETH/USD four-hour value chart. Supply: TradingView

Concurrently, Ether’s relative energy index is close to its “overbought” threshold of 70, which as a rule of technical evaluation tends to precede a sell-off. In different phrases, ETH may consolidate round $1,920 within the coming days earlier than pulling again to its rising trendline assist close to $1,850.

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Conversely, a decisive transfer above the $1,920-level, accompanied by an increase in buying and selling volumes, may set off a long-term upside setup shared by “Wolf,” a pseudonymous market analyst, as proven beneath.

ETH/USD weekly value chart. Supply: Wolf/TradingView

The setup showcases the degrees round $1,820 as assist in a so-called accumulation vary, with $4,000 serving as resistance on the opposite finish. Wolf famous that the value may rally towards $4,000 “a couple of months from the Merge,” a highly-awaited improve that may make Ethereum a proof-of-stake protocol.

The views and opinions expressed listed here are solely these of the writer and don’t essentially replicate the views of Each funding and buying and selling transfer includes danger, you must conduct your personal analysis when making a choice.