Yesterday, blockchain intelligence firm Santiment posted a tweet on its official Twitter page. The firm revealed that $505 million worth of Ethereum (ETH) was transferred to Binance and this was the largest self-custody to exchange transfer in the past 5 years. The transfer had a significant effect on the price of ETH and at press time, CoinMarketCap showed that it had gone down by 1.15% in the 24-hour period. This 24-hour drop flipped ETH’s weekly price performance into the red at -0.25%. The price of ETH has been pushed down to a key support level of $1,800 and if it breaches this support level, it may further go down to $1,760 or even $1,700. On the other hand, closing above the $1,800 support level will lead to ETH consolidating between the two points for a couple of days, followed by a challenge at the closest resistance of $1,925.84.

In addition, analysis indicates that the 24-hour loss also caused the 9-day Exponential Moving Average (EMA) to cross bearishly below the 20-day EMA. The Relative Strength Index (RSI) also attempted to cross bullishly above the daily RSI Simple Moving Average (SMA) line but could not do so, which confirmed the bearish trend. Considering all of this, the near-term outlook is uncertain, with the key support level at $1,800 possibly being broken, which in turn will lead to ETH’s price experiencing declines in the coming days. The possibility also exists of ETH consolidating around the support and resistance levels before making a move.

Investors and analysts should continue to watch the price action of ETH and remain vigilant in analyzing micro-trends and technical indicators. It is important to calculate potential risks by gathering sufficient data and do your own research and due diligence before making any investments of Ethereum or any other cryptocurrency.



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