- A sell signal emerged on the 3-day chart as Ethereum approached the $3,500 resistance level.
- Ethereum Foundation’s wallet added 4,000 ETH to Kraken, raising questions.
Ethereum [ETH], which was riding the coattails of Bitcoin’s [BTC] recent surge, found itself at a crucial juncture, prompting traders to exercise caution as new data signaled potential shifts in market dynamics.
Some concerns
On the 3-day chart, Ethereum exhibited a notable sell signal as it approached the critical $3,500 resistance level.
This technical indicator raised a cautionary flag for traders, urging careful consideration before making significant moves in the ETH market.
Source: X
Ethereum whales were observed to be making massive moves as well. Data from Lookonchain showcased a substantial transaction involving a wallet linked to the Ethereum Foundation.
Notably, this wallet, dormant on Kraken since the 6th of January 2022, recently deposited 4,000 ETH (equivalent to $13.3 million) into the exchange.
The wallet had earlier received a sizable sum of 39,006 ETH (about $130.6 million) from EthDev on the 6th of January.
With a press time balance of 33,006 ETH (approximately $110 million), questions arose about the foundation’s strategic financial decisions and their potential repercussions on the market.
Source: X
Such significant movements can contribute to Fear, Uncertainty, and Doubt (FUD) circulating Ethereum.
Traders and investors may interpret these actions as indicators of uncertainty, potentially influencing market sentiment and impacting short-term price trajectories for ETH.
The overall sentiment can take a bearish turn as these developments raise concerns about Ethereum’s immediate future.
With sell signals and notable movements among influential holders, the market appears poised for increased volatility.
Looking at more data
ETH was trading at $3,445.82 at press time, reflecting a 2.94% growth in the last 24 hours.
However, the sell signal and whale movements cast shadows on the sustainability of this upward trend. Contrary to these cautionary indicators, the network metrics presented a mixed picture.
Network growth demonstrated increased interest, with new addresses participating in ETH. Velocity, indicating the frequency of ETH trades, also registered growth, showcasing heightened activity.
Source: Santiment
Realistic or not, here’s ETH’s market cap in BTC’s terms
While taking a look at the overall Ethereum network, AMBCrypto saw that overall activity remained high. This was showcased by the gas usage, which remained constant.
Source: Santiment
However, NFT trades on the Ethereum network witnessed a decline, which could cause problems in the future.