Ethereum Price Analysis: ETH Faces Pressure After $56 Million Transfer to Kraken

Ethereum Price Analysis: ETH Faces Pressure After $56 Million Transfer to Kraken

Ethereum has crashed to prices below $3,700. This came at a similar time when the movement of the 15,254 ETH, valued at about $56.1 million, went into Kraken, a cryptocurrency exchange. The move once again reignited investors' concerns over the selling pressure that would push prices even lower.

More conventionally, sizable transfers into exchanges are perceived as tending to presage a sale and are thus bearish for market sentiment. At press time, Ethereum (ETH) was trading at $3,689.78, a 0.57% decline from the 24-hour high.

A continuation of the same theme, the reactivation of a formerly dormant Ethereum address that has laid inactive for nearly nine years, appeared with holdings of around $21.9 million worth of ETH, also helped set the stage for discomfort in the market. This account, coupled with one other significant Ethereum transaction in May that included dormant addresses, has put market watchers on speculation on whether this large sum might now enter circulation again and what kind of impact this might have on the price.

Ethereum Market Response and Speculative Analysis

The price of Ethereum recorded a steep correction of over 3.5% and marked an intraday low of $3,620. While it reflected this slight recovery, the bearish trend continued to dominate in a pronounced manner, and investors also did not let down their guard. Marketing analysts have been particularly observing the trends.

They thought that such activation of inactive accounts and a high-scale movement were the signs of heightened activity in the market about sales. However, many of them have been optimistic yet regarding the future of Ethereum at this moment.

Notably, cryptocurrency analysts, Mags, suggested that Ethereum was likely to increase by 13% from previous price actions and the market analysis of the current time. Based on expert analysis, it appears the asset is preparing into a structure similar to the prior cycles with massive upsurges, forecasting the upsurge to go as high as $4,200.

Sentiments and Market Data Vary

On one side is optimism, and caution is on the other. A recent analysis by 10X Research noted that Ethereum had broken a critical support level of $3,725 and now indicated potential further drops and liquidations. Major liquidation has been taking place over the past day in Ethereum to about $59.61 million, with most being longs. These are indicator statistics regarding the current volatility of the markets and how high the stakes are right now for trading activities.

However, the total trading volume for Ethereum soared to 40.27% on the previous day while the Open interest for Ethereum derivatives dropped slightly, indicating that hedge funds could be making some initial cutbacks as the situation remains uncertain.

However, long-term prospects are still exciting for Ethereum with global investment manager VanEck is now forecasting that the Ethereum price could rise as high as $154,000 in 2030, with potential free cash flow estimates brought to a base case and a growing level of network utility. However, there are still many challenges Ethereum faces. These include current regulatory scrutiny—almost shared with Bitcoin at the moment—that may affect how it is classified and operates in the future.

Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.

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