The recent ethereum-etfs/” target=”_blank” rel=”nofollow”>approval of ethereum ETF filings by the US Securities and Exchange Commission (SEC) on Thursday has sparked speculation about the next price movements for the market's second-largest cryptocurrency as the date approaches commercial launch.
However, significant ethereum (eth) transfers to cryptocurrency exchanges have raised concerns about profit taking, portfolio rebalancing, and potential market speculation.
Sell-off amid ethereum ETF green light?
x.com/ali_charts/status/1793913528640053489″ target=”_blank” rel=”nofollow”>According According to crypto analyst Ali Martínez, these events coincide with ethereum founder Jeffrey Wilke's transfer of 10,000 eth, valued at approximately $37.38 million, to the Kraken cryptocurrency exchange.
Furthermore, the increase in ethereum balances on cryptocurrency exchanges indicates a notable increase in tokens available for sale.
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The chart below shows that over 242,000 eth have been transferred to cryptocurrency exchange wallets over the past two weeks, indicating increased trading activity that may contribute to price volatility.
This trend, along with the Wilke transfer, suggests the possibility of a sell-off or increased profit-taking among market participants.
While industry experts like Anthony Pompliano see the approval of the ethereum ETF as a positive sign for the entire industry, traders are advised to exercise caution. For Martínez, the growing number of eth deposits in exchange wallets implies a possible market reaction characterized by profit taking or selling pressure.
Furthermore, the analyst notes that the Tom DeMark (TD) Sequential Indicator has presented a sell signal on ethereum's daily chart, indicating the possibility of a pullback or a new countdown phase before the uptrend resumes. .
ethereum Price Outlook in Focus
Going deeper into the price analysis, considering IOMAP (Input-Output Model and Profitability) data, Martínez highlights that ethereum has a strong demand zone between $3,820 and $3,700, where over 1.81 million addresses purchased approximately 1.66 million eth.
This range could provide support amid increasing selling pressure. However, if this zone does not hold, the next key support area lies between $3,580 and $3,462, where 3.13 million addresses acquired over 1.50 million eth.
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On the upside, ethereum's most important resistance barrier is between $3,940 and $4,054, with over 1.16 million addresses buying around 574,660 eth.
Martínez suggests that a daily candle close above $4,170 would invalidate the bearish outlook and potentially trigger a new upward countdown phase, with a target towards $5,000.
At the time of writing, the price of eth is $3,719, reflecting a 2.5% decline in the last 24 hours. However, according to the analyst's assessment, ethereum remains within a crucial demand zone.
As the market nears the launch and start of trading for the eight ethereum ETF spot applications by the world's largest asset managers, the exact impact on price action is yet to be fully realized. .
Featured image from Shutterstock, chart from TradingView.com
