Analysis: “Endaoment’s Ethereum Sale of $12.47M Sparks Investor Worries”
After reaching $4,109 a fortnight ago, Ethereum [ETH] has faced challenges sustaining an upward trend. During this period, the cryptocurrency has traded within a narrow range.
The prevailing market conditions have mainly been linked to mounting selling pressure from various bodies and individuals.
Endaoment Offloads 3,690 ETH for $12.47M
Reports from SpotOnChain indicate that prominent Ethereum holders have been actively divesting their assets. Recently, Endaoment, a charitable organization operating on the Ethereum network, emerged as one of the latest entities to liquidate their holdings.
Spotonchain’s data reveals that Endaoment executed a transaction selling 3,690 ETH tokens valued at $12.47 million. This sale signifies the entity’s first move in ten months and marks its largest transaction to date.
The substantial sale by a major player like Endaoment could instigate concerns about increased selling pressure and maybe even a bearish outlook in the short term. Nevertheless, the nature of the sale being for charitable purposes might alleviate negative perceptions, as it is driven by philanthropic motives rather than speculative trading.
Impact on Ethereum’s Price Trends
Despite heightened selling activities by significant holders, Ethereum has managed to sustain its position within the consolidation range spanning from $3,500 to $3,300.
At the time of reporting, ETH was changing hands at $3,429, recording a modest uptick of 0.21% on daily charts and extending its bullish streak by 2.45% on a weekly basis.
These increases indicate that Ethereum bulls are striving to reclaim dominance in the market and propel prices higher, while bears are persisting in their efforts to drive prices down.
Market analysis by CryptoCrypto underscores the prevailing optimism in the Ethereum market, with investors anticipating a potential price rebound.
Positive market sentiment is corroborated by an upward trend in both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators. The RSI recently displayed a bullish crossover, suggesting a surge in buying pressure as buyers take the lead. The RSI presently stands at 47, marking an increase from 42.
Simultaneously, the MACD line is edging towards a bullish crossover, further affirming the strengthening upward momentum.
Furthermore, Ethereum’s Exchange Supply Ratio has been on a downward trajectory over the past month, indicating a higher outflow of ETH from exchanges compared to inflows.
This trend implies growing optimism as more investors are accumulating rather than divesting their holdings.
Moreover, Ethereum’s Bitmex Basis Ratio has sustained a positive outlook since the beginning of the year.
A positive basis ratio signifies that futures traders are willing to pay a premium for their contracts, reflecting a bullish market sentiment as they anticipate price appreciation.
Future Prospects for Ethereum
In summary, Ethereum appears locked within a consolidation phase, with competing forces of bulls and bears vying for control of the market. While sellers like Endaoment are active, buyers are also engaged in accumulating assets.
Should the current market conditions persist, Ethereum is likely to continue oscillating between the $3,300 and $3,500 price levels.
If the bulls manage to regain dominance, ETH could breach the $3,500 mark and potentially encounter resistance around $3,700. Conversely, if sellers maintain control, the cryptocurrency might retreat towards $3,305.