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 Could 30. Nonetheless, the ETH/USD pair dangers dealing with one other sell-off spherical as a consequence of issues a few huge ETH influx into an alternate.

58.7K Ether transferred to FTX in Could

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

The majority switch, which follows the fund’s 26,700 ETH deposit to the identical alternate earlier in Could, raised suspicions that it might dump the Ether stash. That’s primarily as a result of, in concept, buyers switch crypto to their alternate wallets solely once they wish to promote them for different belongings. 

Nonetheless, the variety of Ether held by exchanges continued to drop in Could, in keeping with on-chain knowledge 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 vital support-turned-resistance stage close to $1,920 for a breakout, as proven beneath.

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

The setup showcases the degrees round $1,820 as help 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 number of months from the Merge,” a highly-awaited improve that will make Ethereum a proof-of-stake protocol.

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