Was the approval of Ethereum ETFs a catalyst for a “news selling” event? A well-known analyst sheds light on the recent market movements. Once again, the cryptocurrency market has proven its sensitivity to regulatory actions in the US, particularly following the Securities and Exchange Commission’s (SEC) green light for Ethereum ETFs. Initially, this news sparked a surge in prices, but it was quickly followed by a significant decline in major digital currencies like Ethereum and Bitcoin.
Renowned cryptocurrency expert Ali Martinez shared his insights on the recent Ethereum developments on May 24. He pointed out that the substantial transfers of Ethereum to exchanges had caught the market’s attention, leading to speculation about profit-taking, portfolio rebalancing, or market speculation. Interestingly, these transfers coincided with the SEC’s approval of the Ethereum ETF, which has raised industry expectations.
Martinez also observed an increase in the number of Ethereum tokens available for sale on exchanges. Over the past two weeks, more than 242,000 ETH has been transferred to cryptocurrency exchange wallets, indicating heightened trading activity that could contribute to price volatility.
The expert highlighted the possibility of a sell-off or increased profit-taking due to the growing deposits of ETH in cryptocurrency exchange wallets. Additionally, the Tom DeMark (TD) Sequential indicator on Ethereum’s daily chart presented a sell signal. The current nine green candlesticks on the daily chart suggest that selling pressure could cause ETH to experience a temporary decline or even enter a new downward phase before resuming its upward trend.
In terms of demand, Martinez noted that over 1.81 million addresses purchased approximately 1.66 million ETH tokens between the price range of $3,820 and $3,700. This demand zone could help support the ethereum price amidst increasing selling pressure. However, if the token fails to maintain this level, the next significant support area lies between $3,580 and $3,462, where over 3.13 million addresses have purchased more than 1.5 million ETH.
Continuing his technical analysis, Martinez suggested that the ethereum price could potentially reach a high of $5,000. However, he also pointed out that the most crucial resistance barrier lies between $3,940 and $4,054. This area has already seen over 1.16 million addresses purchasing around 574,660 ETH. If ETH manages to overcome this hurdle and closes above $4,170, it would invalidate the bearish outlook and open the possibility for a new upward phase towards $5,000.
As of now, the ethereum price stands at $3,703.07, representing a 4.4% increase in the last 24 hours.
Disclaimer: The views and opinions expressed in this article, including those of the author and any individuals mentioned, are for informational purposes only and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries a risk of potential financial loss.
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