Was the approval of Ethereum ETFs a catalyst for a “news selling” event? A well-known analyst sheds light on the recent market movements. Once again, the cryptocurrency market has showcased its sensitivity to US regulatory actions in the past 24 hours, particularly following the Securities and Exchange Commission’s (SEC) greenlight on Ethereum ETFs. This news initially sparked a surge in prices, followed by a significant downturn in major digital currencies, including Ethereum and Bitcoin.
Renowned cryptocurrency expert Ali Martinez shared his insights on the recent Ethereum developments on May 24. Martinez drew attention to the significant influx of Ethereum transfers to exchanges, which has captured the market’s interest. “This movement has ignited speculation about potential profit-taking, portfolio rebalancing, or market speculation. These developments align with the SEC’s approval of the Ethereum exchange-traded fund, which has generated high expectations within the industry.”
When examining the Ethereum balance on exchanges, the expert noted a rise in available tokens for sale. Over the past two weeks, more than 242,000 $ETH has been transferred to cryptocurrency exchange wallets. This indicates an increase in trading activity on exchanges, which could contribute to price volatility, according to the analysis.
“The growing $ETH deposits in cryptocurrency exchange wallets suggest the possibility of a sell-off or increased profit-taking. Meanwhile, the Tom DeMark (TD) Sequential indicator signals a sell on Ethereum’s daily chart. The current nine green candlesticks on the daily chart indicate that a surge in selling pressure could cause ETH to rebound for one to four daily candlesticks, or even initiate a new downward countdown phase before the uptrend resumes.”
Additionally, the expert highlighted that over 1.81 million addresses have purchased approximately 1.66 million ETH tokens within the $3,820 to $3,700 range. According to Martinez, this demand zone may help maintain control over the Ethereum price amidst mounting selling pressure. However, if the token fails to sustain this level, the next crucial support area will be between $3,580 and $3,462, where over 3.13 million addresses have purchased more than 1.50 million ETH.
Expanding on his technical analysis, Martinez suggested that the Ethereum price could reach a high of $5,000. “On the other hand, the most significant resistance barrier for Ethereum lies between $3,940 and $4,054. Here, over 1.16 million addresses have already purchased approximately 574,660 ETH. If ETH surpasses this obstacle and achieves a daily close above $4,170, the bearish outlook will be invalidated. This could lead to a new upward countdown phase towards $5,000.”
At the time of publication, the Ethereum price stood at $3,703.07, reflecting a 4.4% increase in the past 24 hours.
Disclaimer: The views and opinions expressed by the author or any individuals mentioned in this article are strictly for informational purposes and do not constitute financial, investment, or any other form of advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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