Compass Investments

– Whale transfers 4,000 ETH to Bitfinex, Ethereum price under threat

4,000 ETH transferred to Bitfinex, market uncertainty.

Despite support from the golden cross, the price is struggling around $3,645.

sales are testing support at $3,540.

Ethereum traders are on high alert after a massive transaction involving 40000 ETH. The amount is valued at approximately $146.08 million and was transferred from an unknown wallet to the Bitfinex exchange. How will the Ethereum price react to this news?

The transfer has caused uncertainty about Ethereum’s continued bullish momentum, as the cryptocurrency has been consolidating above $3,600 in recent weeks. Historically, such large transfers are associated with potential selling, and there are concerns that volatility will increase in the short term.

A golden cross was detected on the four-hour chart when the 13-period moving average is above the 49-period moving average. This is a bullish signal, which means that the short-term trend is positive and prices are likely to rise in the near future.

By supporting the golden cross, Ethereum keeps prices above these moving averages, which increases traders’ confidence. Ethereum is consolidating near its recent highs and is trading at $3,642 at the time of writing.

However, the future of Ethereum remains uncertain as traders are unsure if this is a sign of selling after the recent whale of a move.

. This is due to the fact that Ethereum failed to firmly break through the $3,645 resistance level.

The Ethereum price chart shows a clear pattern of support and resistance levels that will determine further movement. The first support is at $3,627, which coincides with the 13-period moving average. This level provided short-term stability and allowed Ethereum to break above the key level.

Just below this level, we can see a strong support level at $3,528, which is the 49-period moving average and the previous range. A break below this level could deepen the correction towards $3,406 and buyers are likely to enter at this level.

On the positive side, the $3,645 barrier for Ethereum is proving to be pretty solid for a breakout.ETH was able to break the $3,300 level. and could pave the way towards the $3,700 psychological level. If this happens, the stage is set for further buy signals and a continuation of the bullish trend.

the Relative Strength Index (RSI) is at 63.64 on the 4-hour chart, indicating strong buying pressure.An RSI value above 50 indicates that bullish sentiment is under control, and an RSI value below 50 indicates that bullish sentiment is under control, Confirming the continuation of the uptrend in Ethereum.

However, the RSI is approaching 70, an overbought level, which is a typical indicator of a short-term price correction.If the RSI approaches or exceeds 70, we can expect a temporary pullback in the price of Ethereum. In this case, Ethereum could fall to a lower support level.

On the other hand, if the RSI remains in the bullish zone, it could be a sign that there is room for further gains as long as the market can handle the whale-induced volatility.

CryptoFeras is still of the opinion that Ethereum can maintain its upward momentum as long as it finds support above $3,350-3,400. The analyst noted that ethereum is outperforming bitcoin, which further supports the bullish sentiment.