market.#EthereumETFApprovalExpectations
Will Ether price drop after Buterin, EF’s ETH sales?
Not all Ethereum Foundation sales have preceded major market corrections.
For instance, its sales of 100,000 ETH in December 2020 came before a 630% price rally. Additional factors behind the Ether price surge were the launch of the Beacon chain, which marked Ethereum’s shift toward proof-of-stake, and the loose Federal Reserve monetary policy in the United States that boosted demand for risk-assets, including cryptocurrencies.
Interestingly, Vitalik Buterin and the Ethereum Foundation's recent Ether sales occur at a time when the Fed is planning to cut interest rates and outflows from spot Ethereum exchange-traded funds (ETF) are slowing down.
From a technical standpoint, Ether is trading inside the range defined by its 50-week (red) and 200-week (blue) exponential moving averages (EMA).
Its recent pullback from the 50-week EMA increases the odds of the price hitting the 200-week EMA—at around $2,000—by October, down about 15% from the current price levels.
The 200-week EMA further coincides with the lower trendline of Ether’s multi-year ascending triangle pattern. This support confluence increases the odds of a sharp rebound, prompting Ether to retest the triangle’s upper trendline—at around $4,000—by 2024’s end or early 2025.
