The crypto market experienced a sharp downturn recently, with Ethereum suffering a notable price decline.
Investors are concerned about further asset value drops following a significant transfer of funds from the Ethereum Foundation. Ethereum (ETH) faced strong selling pressure on August 27, aligning with broader crypto market corrections.
Ethereum Foundation Transfers 35,000 ETH
On August 23, the Ethereum Foundation transferred 35,000 ETH to Kraken’s cryptocurrency exchange, reducing its balance from 309,000 ETH to 274,000 ETH. This move raised alarm among investors as such transfers have historically been associated with subsequent price crashes. The sale, tracked by Arkham Intelligence, resulted in a sharp drop in Ethereum’s value, triggering a 14.51% decline in the following five days.
The #Ethereum Foundation deposited 35K $ETH($94.07M) at $2,688 to #Kraken 5 days ago, now at $2,450, down 8.8%!#Ethereum Foundation sold near the top again!Since Jan 1, 2021, the #Ethereum Foundation has sold 239K $ETH($654M). pic.twitter.com/LQeRN5grOk
— Lookonchain (@lookonchain) August 28, 2024
A similar transfer occurred on May 6, 2023, when the foundation moved 15,000 ETH, worth approximately $30 million. That transaction preceded a 16% drop over the next month and a 24% decline over the following three months, reaffirming investors’ concerns that foundation transfers often signal potential downturns for Ethereum.
Current Market Conditions and Price Movements
As of press time, Ethereum was priced at $2,499, marking a 3.9% decrease in the last 24 hours and a 2.01% decline over the past week. The asset’s market capitalization currently stands at $304 billion, with a 24-hour trading volume of $21.47 billion. The circulating supply of Ethereum is approximately 120 million ETH.
Source: Coingecko
Despite these declines, the price has recovered, bouncing back nearly 4% from a recent low of $2,392. However, uncertainty remains, with traders watching for further developments.
Technical indicators offer a mixed outlook. The Ethereum/USDT chart reveals a recovery of 2.55%, with the price bouncing off a $2,400 support level. The price currently trades just above $2,500 but remains below the middle Bollinger Band, suggesting a resistance point around $2,630. Traders are monitoring this level closely to determine whether the recovery will gain traction.
Further analysis points to mixed sentiment in the market. The Aroon Indicator signals ongoing bearish momentum, with the Aroon Down indicator reading 92.86%, indicating a strong downward trend. Meanwhile, the Aroon Up indicator stands at 71.43%, hinting at a possible shift in momentum if buying pressure continues to build.
Source: TradingView
Additionally, the Relative Strength Index (RSI) is currently at 39.72, reflecting a bearish bias but inching closer to the neutral 50 level. Traders closely observe this indicator, as a move above 50 could signal a potential bullish reversal.
However, market sentiment remains cautious for now, with traders hesitant to fully commit to buying positions until there is clearer evidence of a sustained recovery.
The post Ethereum (ETH) Prediction August 28: Ethereum Crash Looms? Foundation’s 35,000 ETH Transfer Sparks Fear appeared first on Coinfomania.
