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

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

58.7K Ether transferred to FTX in Could

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

The majority switch, which follows the fund’s 26,700 ETH deposit to the identical change earlier in Could, raised suspicions that it will dump the Ether stash. That’s primarily as a result of, in principle, buyers 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 Could, in response to on-chain information tracked by Glassnode.

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

Ethereum stability on exchanges. Supply: Glassnode

ETH rebound weakens

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

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

Concurrently, Ether’s relative power 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 might 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, might set off a long-term upside setup shared by “Wolf,” a pseudonymous market analyst, as proven under.

ETH/USD weekly worth 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 might rally towards $4,000 “a number of months from the Merge,” a highly-awaited improve that will make Ethereum a proof-of-stake protocol.

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