Ethereum Foundation Wallet Transfers $13.3 Million to Cumberland, ETH Price Remains Steady
On March 3rd, a wallet connected to the Ethereum Foundation made a significant transaction, sending $13.3 million worth of Ethereum’s altcoin to Cumberland. Surprisingly, this transfer had little to no effect on the price of ETH, which managed to stay above the $3,500 mark. However, indicators suggest that despite the current bullish momentum, ETH’s upward trajectory may slow down in the near future.
Cumberland, known for its services as a settlement service provider and allowing institutions to trade, received the funds from the foundation. This transaction caught the attention of Lookonchain, a wallet tracking handle, as it was the first time in quite a while that the foundation had sent funds to this specific wallet. The last similar transaction occurred back in November 2015.
Although the exact reason for the transfer remains unknown as the Ethereum Foundation has not publicly disclosed it, market participants are divided on their opinions regarding the intention behind this move. Nevertheless, the fact that ETH’s price remained steady above $3,500 suggests that more market participants opted to hold onto their ETH rather than sell.
Analyzing the data using Santiment, the inflow and outflow of ETH on exchanges were relatively close, with the outflow only slightly higher. If this trend continues, it could potentially push ETH’s price back to around $3,600. Looking at a more bullish perspective, if the outflow continues to surpass the inflow, ETH’s value could approach the $4,000 mark.
Examining the daily timeframe, the Accumulation/Distribution (A/D) indicator indicates that the accumulation phase is surpassing the distribution phase. This, coupled with Ethereum’s momentum, suggests that the price could rise further if bulls manage to defend the $3,334 support level. However, the Awesome Oscillator (AO) is displaying a red histogram bar, indicating that the bullish momentum may start to slow down.
In a highly bearish scenario, ETH’s price might drop below $3,200. However, if bulls manage to counteract this sudden bearish appearance, the value of the altcoin could eventually rise towards $4,000.
Furthermore, another indicator, the Liquidation Heatmap, reveals that if ETH reaches $3,550 again, millions of positions could potentially be liquidated. On the other hand, the heatmap also identifies $3,120 as a favorable liquidity position. Consequently, if ETH’s price declines towards the $3,000 zone, long positions around $3,120 could yield profitable results.
Considering these indicators, despite the minor setback in its upward momentum, the path seems clear for ETH to reach the coveted milestone of $4,000.
Analyst comment
Neutral news.
As an analyst, it is expected that the market for Ethereum (ETH) will continue to show steady growth, with its price potentially reaching the $4,000 mark. However, there may be a slowdown in the bullish momentum in the near future, indicated by the red histogram bar on the Awesome Oscillator. Market participants seem to be holding onto their ETH rather than selling, as evidenced by the steady price above $3,500. The inflow and outflow of ETH on exchanges are relatively balanced, with a slight outflow, which could push the price back to around $3,600. The path to $4,000 is clear, but there may be potential drops below $3,200 in a bearish scenario.
