Ethereum (ETH) is currently trading at a price of $2,666.49, marking a 1.91% increase within the last 24 hours. Despite this modest increase, the 24-hour trading volume has taken a significant dip, decreasing by 48.83% to stand at $15.15 billion. This suggests a reduction in trading activity. Nevertheless, Ethereum’s market capitalization continues to rise, currently standing at $321.4 billion, marking a 1.92% increase.
In a significant move, the Ethereum Foundation has transferred 50,000 ETH, equivalent to $131.66 million, to a multi-signature wallet used for DeFi participation. This move is believed to be in line with community proposals that advocate for yielding rather than selling ETH. If successful, this strategy could reduce selling pressure on ETH and solidify Ethereum’s role within the DeFi ecosystem.
Looking at Ethereum’s key technical levels, the cryptocurrency is currently testing a resistance level at $2,762. This follows a recovery from recent lows. Should a breakout occur above this level, it could potentially propel the price towards $2,800 and even $3,000. On the other hand, a rejection at this level could send ETH spiraling down to $2,640, a key support level. Should this support level break, the next downside target stands at $2,500, where stronger demand is anticipated.
Technical indicators currently suggest mixed sentiment. For instance, the Relative Strength Index (RSI) stands at 40.18, indicating that ETH is nearing oversold territory but lacks robust buying momentum. The moving average of the RSI, standing at 42.50, suggests weak demand. Should the RSI rise above 50, it could indicate renewed strength. Meanwhile, the moving averages suggest a bearish crossover, with the 9-day MA lying below the 21-day MA, indicating a short-term downside risk. The Chaikin Money Flow (CMF) remains in the negative, signifying capital outflows and limited buying pressure.
The near-term outlook for ETH is largely dependent on whether it can break above the resistance level or maintain its position above the key support level. The recent transfer of 50,000 ETH by the Ethereum Foundation may contribute to long-term stability within the ecosystem. However, the price action remains fragile and is likely to be influenced by Bitcoin’s movements. Therefore, market participants should be attentive to Bitcoin’s price action, which may dictate the next significant move for Ethereum.
