Ethereum Price Threatens to Dip Below $2,000 Amid Surge of 10K ETH on Exchanges
Ethereum’s value has seen a slight increase of 1.26% to $2654 in Friday’s trading session. This rise follows a mid-week downturn that has also helped Bitcoin climb back to $60000, sparking a new wave of relief in the altcoin market. The ascending price of Ethereum is now aiming towards the $2750 resistance level, a crucial area that could fuel further recovery and sustain the ongoing correction.
Recent blockchain data from Arkham Intelligence reveals a significant transfer of 10,000 ETH, valued at $26.02 million, from a Gnosis Safe Proxy address linked to Metalpha to Binance. Despite this transaction, Ethereum’s price remained stable above $2600, with a market cap of $315.5 billion.
Metalpha, an asset management firm associated with Bitmain, a major Bitcoin mining company, had previously sought to redeem 10,000 ETH from Lido. This move underscores Metalpha’s active involvement in managing substantial cryptocurrency assets, potentially in preparation for strategic financial maneuvers within the market.
Over the past couple of weeks, the cryptocurrency market has experienced a relief rally following a sharp correction in July. This bullish upturn has propelled Ethereum’s price from $2111 to $2620, marking a 24% increase. The current upward trajectory is expected to challenge the downward trendline at $2750, a key level that previously served as significant support during market consolidation.
The Ethereum price prediction has exhibited a sideways movement between two parallel rectangle patterns from March to early August. This lateral trend at a notable high signifies the distribution phase, where large investors gradually offload their positions to retail traders. A retest of the $2750-$2775 range for ETH could alleviate selling pressure and extend the market’s decline, supported by a recent death crossover between the 50-and-200-day EMA, reinforcing the bearish sentiment.
If the asset fails to hold above this level, it could potentially drop by 19% to reach $2127, with further downside risking a test of the $1900 support. Conversely, Ethereum has bounced off the 61.8% Fibonacci retracement level, seen as a healthy correction for buyers to regain bullish momentum. The high ADX indicator at 39% suggests that sellers are leading an extended rally, often attracting buyers looking to capitalize on dips in the market.
A breakout above the current resistance level would establish strong support and weaken the bearish scenario, potentially propelling the asset by over 20% to target $3400.
