Ethereum Price Today: ETH trades at $2,500 after 5% Bounce
Highlights
- Investors speculate that the Ethereum Foundation’s 35,000 ETH transfer is the reason for the recent crash.
- ETH price plummeted nearly 12% from a high of $2,699 to $2,387 with previous transfers triggering similar crashes.
- On-chain data shows that whales accumulated Ether during the recent dip.
Ethereum price selloff on August 27 was mainly caused by Bitcoin’s crash, but investors are also attributing it to the Ethereum Foundation. The entity behind ETH transferred 35,000 ETH worth $94 million on August 23 to Kraken exchange. Crypto enthusiasts are saying it was a top signal. This is not the first time the Ethereum Foundation’s ETH transfers have led to a fatal Ethereum price crash, there are many instances as seen in the below chart.
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
Ethereum Foundation’s Sell Signal Record
On August 23, the Ethereum Foundation’s balance dropped from 309,000 ETH to 274,00 ETH. Data from Arkham Intelligence showed that the 35,000 ETH was transferred to Kraken. Every time the entity sells ETH, it has a vivid impact on the price of Ether. Crypto investors consider the foundation’s transfers a top or sell signal as the Ethereum price often crashes, forming a local top.
The August 23 transfer resulted in a 14.51% crash in Ethereum price in the next five days.
Historically, this outlook has remained true. For example, the May 6, 2023, transfer of 15,000 ETH worth nearly $30 million triggered a 16% plummet after a month and a 24% crash in the next three months.
Ethereum Foundation currently holds 274,000 ETH worth $675 million. ETH price has bounced nearly 4% from the August 27 bottom of $2,392 and shows promise of a further recovery if Bitcoin manages to recover above the $60,000 psychological level.
Ethereum Price Analysis: ETH Short-Term Recovery Rally on the Cards
Ethereum price has cleared the sell-side liquidity below the swing lows formed after August 12. This development, called rinsing, is often seen in the crypto futures markets, where prices drop before triggering a bullish move. With that in mind, investors can expect the recovery rally from Ether to be strong.
One condition for this bounce is Bitcoin’s strength. If BTC price reflects bullish momentum and flips the $60,000 key level into a support floor, it would suggest the start of a recovery rally for not just ETH but also the rest of the crypto markets.
Such a development could see Ethereum price forecast hint at a revisit the $2,618 hurdle that was recently flipped into a resistance level.
Adding credence to this outlook is the recent uptick in whale transactions worth $1,000,000 or more. These transfers serve as a proxy of institutional investors, and when these transactions occur after a price drop, they often correlate to dip-buying opportunities. More often than not, if this metric spikes after a brutal selloff, it is proceeded by quick price reversals.
On the other hand, if Etheruem price fails to recover, it could crash another 11% before it encounters a key support level of $2,190.
Frequently Asked Questions (FAQs)
1. What triggered the recent Ethereum price crash?
2. How much did the Ethereum price drop after the 35,000 transfer on August 23?
3. What is the historical significance of the Ethereum Foundation's ETH transfers?
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