Ethereum sees large transactions following ETF approval, sparking “sell the news” concerns.
Co-founder Jeffrey Wilke transfers $37 million in ETH to Kraken exchange.
Technical indicators suggest potential price retracement, but a bullish trend is possible.
Following the SEC’s approval of Spot Ether ETFs, the market has witnessed substantial Ethereum transactions to crypto wallets. This trend has garnered significant attention, with prominent on-chain analyst Ali Charts suggesting it could be a “sell the news” event. Simultaneously, market participants are speculating on the possibility of profit-taking, portfolio adjustments, or general market speculation.
Notably, Jeffrey Wilke, co-founder of Ethereum, transferred 10,000 ETH, worth approximately $37.38 million, to the Kraken exchange. Wilke’s transfer is part of a broader trend of trading activities that could influence ETH’s price dynamics, with over 242,000 ETH transfers occurring in the past seven days.
Market experts are pointing to several indicators amid these developments, calling for cautious trading. For instance, the Tom DeMark (TD) Sequential indicator on Ethereum’s daily chart has presented a sell signal.
Although industry leaders like @APompliano see the #Ethereum ETF approval as an “approval of the entire industry” and as “the last dam to be broken,” traders must be cautious. https://t.co/FMSwJGzhz9
— Ali (@ali_charts) May 24, 2024
Similarly, the current green nine candlestick suggests the potential for selling pressure. This position indicates the possibility of a price retracement over the next few days or a new downward phase before a potential uptrend continuation.
Furthermore, data from the “In/Out of the Money Around Price” (IOMAP) metric shows that around 1.81 million addresses purchased 1.66 million ETH between $3,820 and $3,700. This zone will likely act as a support level amid the increased selling pressure. However, if this support fails, the next significant support area lies between $3,580 and $3,462.
Conversely, the $3,940 and $4,054 range represents Ethereum’s most critical resistance zone. Within this level, over 1.16 million addresses previously acquired 574,660 ETH. Ethereum could overturn the bearish outlook if it closes above $4,170, potentially triggering a new upward trend toward $5,000.
As these developments unfold, traders and experts are considering both the potential for a sell-off and the broader implications for the cryptocurrency market.
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