Ethereum Price Analysis: Will $3000 Breakout Stall as Foundation Dumps 35k ETH?

Ethereum price analysis signals the $3000 breakout amid market recovery, boosted by potential Fed rate cuts. ETH ETF outflows trend may challenge further gains.
By Sahil Mahadik
Ethereum ETF Flows Flip Negative Again As ETH Price Cracks 6%, What’s Next?

Highlights

  • Ethereum price analysis suggests a critical juncture as ETH retests its 6-month support level as flipped resistance.
  • The Ethereum Foundation recently transferred 35,000 ETH to Kraken exchange, potentially accelerating selling pressure.
  • Fed Chair's signal that a rate cut is imminent could boost ETH to break out toward the $2800 level.

Ethereum price analysis shows a 24-hour gain of 4.5% to hit the $2800 resistance amid market recovery. The renewed buying pressure can be attributed to Fed Chair Jerome Powell’s confidence towards colling inflation and potential interest cuts in the coming months. As Bitcoin price surged to $65000 on Friday, the ETH price challenged a key resistance to bolster further growth. Will this recovery be prolonged?

Advertisement
Advertisement

Ethereum Price Analysis: ETF Outflows and $94M Transfer Put Pressure on ETH Recovery

The Ethereum Foundation (address 0xde0) recently transferred 35000 ETH to the crypto exchange Kraken. This transfer, valued at approximately $94.07 million, hints the foundation might liquidate its assets to bear operation costs.

Typically, a major selling from institutions/whales bolsters the bearish momentum in the market, but the Ethereum price analysis signals sustainability above $2700.

According to Arkham Intelligence, the Ethereum Foundation’s address still holds substantial cryptocurrency assets, valued at $840 million, including 273.776K ETH and 31.015K WETH.

In addition, the U.S-based Ethereum ETFs (Exchange Transfer Fund) witnessed an outflow of $5.70 Million on Friday, as per the SoSoValue data. This contributed to the seven-day new outflow from spot ETF ETFs, limiting the recovery momentum in Ether coin.

US ETH spot ETF
ETH spot ETF | SoSoValue
Advertisement
Advertisement

ETH Price Hints Major Breakout 

Ethereum price analysis showed a notable bounce from $2112 to $2760 in the last three weeks, registering a growth of 30%. The bullish reversal backed by a downtick in the Average Directional Index (ADX) indicator accentuates the diminishing bearish momentum. 

If the bullish momentum persists, the ETH price could breach the $2800 resistance, bolstering a 21% rally to $3400.

Ethereum Price Analysis
ETH/USD – 1d Chart

According to the intothebook data, the $2800 resistance is backed by 1.08 Million ETH coins held by 1.13 Million Addresses. Therefore, if these holders decide to liquidate their assets at break even, the altcoin could witness an overhead supply. On the other hand, the large green spheres displayed on the In/Out of the Money Around Price (IOMAP) metric indicate that Ethereum price prediction sees firm support on the downside.

Ethereum In/Out of the Money Around Price
In/Out of the Money Around Price | Intotheblock

Conversely, the potential reversal will indicate the selling-on-rallies sentiment in the market persists, which could push the Ethereum price analysis target back to $2112.

Advertisement

Frequently Asked Questions (FAQs)

1. How might potential Fed rate cuts affect Ethereum's price?

Fed Chair Jerome Powell's signals of potential rate cuts in the coming months have bolstered market confidence, leading to renewed buying pressure on Ethereum.

2. What role do ETF outflows play in Ethereum's recovery?

The recent outflow of $5.70 million from U.S.-based Ethereum ETFs has limited recovery momentum. These consecutive outflows over seven days indicate investor caution.

3. Which is the key resistance for ETH price?

Ethereum is currently facing resistance at the $2800 level, backed by 1.08 million ETH coins held by 1.13 million addresses
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.