Ethereum (ETH) may face a notable decline if recent developments ultimately influence its price. On February 10, Lookonchain verified that Jeffrey Wilcke, co-founder of Ethereum, moved 4,300 ETH, worth $10.7 million, to the Kraken cryptocurrency exchange.
When a substantial amount of cryptocurrency is transferred to an exchange, it typically indicates the involved party’s readiness to sell. This occurrence prompted conversations among market observers and investors, raising questions about why a founding member of the project would choose to divest at this particular juncture.
A significant participant enters the scene.
In November 2023, Coin Edition reported on the sale of 100 ETH by Vitalik Buterin, another co-founder, when ETH was priced at $1,800. However, shortly after, CoinMarketCap data showed that the price surged above $2,000.
In the current scenario, Wilcke was just one of many involved in selling ETH. According to the whale tracking platform ‘Whale Alert,’ a specific whale transferred 13,771 ETH to Coinbase, indicating an uptick in exchange inflow.
Despite these transfers, ETH’s price has remained robust and was trading at $2,532 at the time of reporting. The 4-hour ETH/USD chart indicated that the cryptocurrency concluded the week on a positive note, breaking and closing above the $2,391 resistance.
Bulls Eye Another Rise
Presently, the market structure indicates a potential path toward $2,700, marking a yearly high for ETH. However, before reaching this level, bulls face the challenge of breaking through the $2,550 threshold, where bears are expected to mount a strong defense.
If the bullish setup facilitates ETH’s successful breach of this level, the price could experience a surge beyond $2,700. Conversely, a rejection might push ETH back to $2,275. Examining the Exponential Moving Average (EMA) on the 4-hour chart reveals that the 20 EMA (blue) has crossed over the 50 EMA (yellow).
At the current moment, the 20 EMA stands at $2,478, while the 50 EMA is at $2,416. This crossover signifies a bullish trend. Maintaining ETH’s price above both EMAs could lead to further upward momentum in the cryptocurrency’s value.
In an extremely bullish scenario, ETH could potentially reach $2,715. Achieving this price target would require strong buying pressure. In the event of such aggressive buying, it could trigger a series of short liquidations.
Conversely, if bears manage to interrupt the bullish momentum, ETH might decline below $2,300. Presently, buyers are dictating the price action, suggesting the possibility of the cryptocurrency reaching a higher level in the short term.