At the start of the business week, the second-largest cryptocurrency briefly fell below $2,300, but buyers stepped in over the past 24 hours, and the asset is now trading around $2,350.
While many analysts remain bullish on ETH’s prospects, persistent selling from wallets linked to the Ethereum Foundation could hinder the asset’s progress and weigh on investor sentiment.
The Upside Targets
X user Ella noted that the cryptocurrency finally moved out of the $2,300-$2,320 range and claimed the four-hour chart has started printing higher lows, calling it “a good first step.” The analyst said the key level now is $2,400, and reclaiming it could lead to a pump toward $2,440.
For his part, Michael van de Poppe argued that the rebound from around $2,300 is “a strong move,” but a bullish breakout is not yet confirmed.
“Much rather than thinking that we’re going to see another drop, the markets are at the most optimal sweet spot to hold and turn back upwards,” he added.
Ted and MikybullCrypto also weighed in. The former said ETH is currently at a crucial resistance level, and reclaiming $2,400 would be the first major sign of strength. The latter was much more bullish, telling their over 92,000 followers on X:
“See you at $3,600 in the short term.”
The Selling Goes on
A major obstacle to Ethereum’s decisive recovery is ongoing selling pressure from investors offloading coins. As CryptoPotato recently reported, a wallet linked to the Ethereum Foundation (a non-profit organization that supports the development and growth of the Ethereum ecosystem) parted with 2,785 units for around $6.42 million.
Another investor mimicked the move shortly after, dumping 1,500 ETH (worth roughly $3.5 million) after nine years of inactivity. The market participant initially purchased 100,000 coins for only $31,000 through the 2015 ICO and still holds 48,500 ETH (about $112 million).
Just a few hours ago, Lookonchain disclosed that an additional investor linked to the Ethereum Foundation sold 7,594 ETH (around $17.8 million) after a year of inactivity.
“This OG bought 200K ETH (cost $61K) during the ICO at $0.31 and also received 42,654 ETH from the Ethereum Foundation when ETH was trading at $13.82,” the analytics platform revealed.
BitMEX’s co-founder Arthur Hayes added to the selling pressure. Earlier this month, he dumped about $22.28 million worth of altcoins, including 6,400 ETH (roughly $15.2 million).
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