After enduring a series of bashings from the crypto community, Ethereum (ETH) finally broke out and jumped above the $ 2,000 psychological resistance. The price rise was connected to the disclosure that leading investment firm BlackRock had filed for an ether ETF.
The development resulted in an increased demand for ETH, thereby positively impacting the price action. At press time, ETH changed hands at $2,121, according to data from CoinMarketCap. Following the surge, many market players are now calling for ETH to reach $2,500 and beat down the dominance of bitcoin (BTC).
Big Players Move ETH
Another interesting development that occurred after the price increase was revealed by the smart money tracking platform Lookonchain. According to Lookonchain, Tron (TRX) founder Justin Sun and Ethereum co-founder Vitalik Buterin both sent ETH worth millions of dollars into exchanges.
In the past hour, #JustinSun transferred 580 $ETH ($1.2M) to #Binance, and #VitalikButerin transferred 50 $ETH ($106K) to #CoinbaseCustody.https://t.co/X1LlbiSnOshttps://t.co/3CfRy0peL6 pic.twitter.com/ZnlauyaDoa
— Lookonchain (@lookonchain) November 10, 2023
Sending coins into exchanges is usually a sign that a sell-off may be impending. But that might not be the case with Sun and Buterin as they are known to be dedicated long-term holders. While there is a chance that Sun might sell a part, it is unlikely for Buterin to do the same as he has claimed not to have sold any ETH for personal gain in years.
Eyes on $2,500
From the ETH/USD 4-hour chart, sellers’ attempt to halt the coin’s uptrend has been neutralized a number of times. First, bears attempted to foil the uptrend at $1,932 on November 9. But the buying momentum was too strong to draw ETH down, and it rose to $2,048.
ETH faced rejection at $2,048. But like the previous attempt, the price jumped above $2,100 this time. However, the Relative Strength Index (RSI) tapped 77.89, indicating that ETH was overbought.
The RSI reading means that buying momentum has remained strong, but suggests that a retrace may be on the cards. If ETH reverses from the uptrend, the support at $1,913 would be vital to help ETH resist a significant plunge.
Should the said support hold, buying pressure may lead the coin in the $2,500 direction. Also, the On Balance Volume (OBV) showed that the intent of market players was for ETH to continue its uptick.
ETH/USD 4-Hour Chart (Source: TradingView)
Lookonchain also put out another post explaining how a whale made losses on ETH trades despite the price increase.
After the price of $ETH increased, this whale deposited all 30,001 $ETH($63.3M) into #Binance just now.
This whale is expected to lose a total of $183M!https://t.co/zZ7z4VImZb pic.twitter.com/gsx7PMnTs7
— Lookonchain (@lookonchain) November 10, 2023
So, traders may need to be cautious in choosing an entry around $2,100. This is because ETH may fall below the threshold before another significant upward movement begins.
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