The recent transfer of $30 million worth of Ether (ETH) by the Ethereum Foundation caused some choppiness in the cryptocurrency markets. On May 6, when the Ether was moved to the Kraken exchange, prices dropped 4.8% to $1,900. However, following timely support from the 50-day Exponential Moving Average (50-day EMA; the red wave) near $1,850, prices recovered modestly to $1,920 on May 7.

The Ethereum Foundation's transaction has raised questions about whether we should expect to see a sell-off event, similar to past instances when the Foundation has dumped Ether. In November 2021 and in May 2021, the Foundation sold 20,000 ETH and 35,053 ETH respectively, at the local market top near $4,850 and $3,500 respectively.

Despite the Foundation's sales, data shows that the Ethereum balance across all the exchanges actually decreased to 18.15 million ETH from 18.22 million ETH on the day of transfer. This suggests that the potential selling pressure easily expelled, and that any subsequent drops are likely unrelated to the Foundation's transactions.

The current behavior of Ethereum's prices appears to be depending on the status of the U.S. banking crisis, and whether the Federal Reserve will be forced to halt its interest rate hikes. With risk-on assets gaining traction, Ether's current bull cycle can be attributed to this macro environment.

Alert traders should be wary of a possible drop below the red wave if it fails to support the price. If this happens, Ethereum might target a confluence of support at the multi-month ascending trendline, along with the 200-day EMA (the blue wave) near $1,700. This would amount to a 13% drop from its current levels.

Ultimately, it would be wise for investors to base their decisions on the data and predictions from market professionals, rather than speculating on potential sell-off events. As long as the market environment remains favourable for cryptocurrencies, the Ethereum Foundation's transactions won't affect Ether's overall positive trajectory.



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