The volatility in the crypto market has intensified since last week, with bulls being on the offensive. Ethereum price extended the breakout above $2,000 reaching highs at $2,300 on Monday alongside the Bitcoin price rally above $44,000.
With 2.8% gains accrued in the last 24 hours, 11% in seven days, 12% in a fortnight, and 18% over the last 24 hours, ETH price is hovering at $2,260 while bulls search for higher support to keep the uptrend unscathed.
Will Galaxy Digital Transfers To Binance Hold Ethereum Price Rally?
Blockchain data monitoring company Lookonchain highlighted that Galaxy Digital, one of the leading digital fund managers in the industry, had transferred 9,179 ETH to Binance exchange.
According to an image from Etherscan shared on X (Twitter), Galaxy Digital made three transactions comprising 3,079, 3,100, and 3,000 ETH with a combined dollar exchange value of $20.9 million.
Note that a wallet of #GalaxyDigital deposited 9,179 $ETH($20.9M) to #Binance just now and currently has 10,038 $ETH($22.8M) left.https://t.co/oPJdrwWcwS pic.twitter.com/eb7cN47ib8
— Lookonchain (@lookonchain) December 6, 2023
Galaxy Digital still holds 10,038 ETH worth approximately $22.8 million. Since the transfers to Binance could dampen the uptrend and push ETH price down, traders must plan accordingly and be alert to avoid falling into a bull trap.
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For now, there is a high probability Ethereum will springboard from support at $2,200. Several indicators reinforce the bullish theory starting with the fact that ETH holds above all three MAs—the 21-day Exponential Moving Average (EMA), the 50-day EMA, and the 200-day EMA.
Ethereum price prediction chart | Tradingview
Despite the resistance at $2,300, Ethereum’s position above the Ichimoku Cloud is a significant bullish signal. While traders may be uncertain whether they should buy now or wait for a bigger correction, chances seem to be high that dips would be profitable. Besides, bull markets tend to have trend reversals which allow other sidelined investors to buy into ETH ahead of the next potential breakout.
That said, it would be prudent to wait until Ethereum resumes the uptrend either from higher support at $2,250 or the grey region marked on the chart before entering new long positions, considering the Relative Strength Index (RSI) is falling back into the neutral area.
FOMO could kick in as Ethereum price blasts through the resistance marked in red at $2,300. A sustained breakout would assure investors of the next major move to $2,500 and subsequently to $3,000.
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