The cryptocurrency market experienced a downturn this week with Ethereum (ETH) also witnessing a decline. The price of ETH fell by over 9.6% since the beginning of the week, reaching its lowest point since mid-February. This drop placed the current price at roughly $2,950 per ETH.
Source: Arkham Intelligence
Contributing to the speculation surrounding the price movement is a recent transaction from a suspected Ethereum Foundation address. On Tuesday, address “0xd7” reportedly sold 100 ETH for 291,267 DAI, a stablecoin pegged to the US dollar, via the Cow Protocol.
This transaction was followed by a transfer of the acquired DAI to another Ethereum Foundation address, “0x9e.” Notably, this address has been involved in consistent ETH-to-DAI conversions through the Cow Protocol recently.
The Ethereum Foundation, a non-profit organization supporting the advancement of Ethereum technology, holds a significant amount of ETH. Reports suggest their known accounts currently hold 310,867 ETH, valued at approximately $915 million. This makes the foundation one of the biggest altcoin holders, excluding exchanges and specific projects. Their total holdings are estimated to exceed $1 billion, including WETH.E (wrapped Ethereum) worth $91.87 million and 329,239 DAI.
The recent sale of ETH by a suspected Ethereum Foundation address has triggered speculation about its potential influence on the future price of Ethereum. The impact of such actions remains unclear, leaving investors and enthusiasts with unanswered questions regarding the short-term trajectory of the world’s second-largest cryptocurrency. Experts are divided on the implications, with some suggesting it could signal a bearish sentiment within the foundation, while others believe it could be a strategic portfolio rebalancing move.
If Ethereum fails to surpass the resistance level of $3,050, it may continue to move downwards. The initial support level on the downside is around $2,850, with the first major support level being at the $2,820 zone.
The most crucial support level is at $2,820 and a clear move below this level may lead to a price drop towards $2,650. If the downward trend continues, the price might drop further towards the $2,540 level shortly. Technical indicators suggest bearish momentum for ETH/USD, with the hourly MACD indicating a sell signal at -75, and the hourly RSI falling below the 50 level. The major support level for Ethereum currently stands at $2,820.
