- The transaction had little to no effect on ETH’s price.
- Indicators showed that ETH’s upward momentum could decline, but $4,000 seems inevitable.
On the 3rd of March, a wallet connected to the Ethereum [ETH] Foundation sent $13.3 million worth of the altcoin to Cumberland.
Cumberland allows institutions to trade and also serves as a settlement service provider.
Lookonchain, the wallet tracking handle, noted that this was the first time in a long while the foundation sent funds to the wallet.
From the post, Lookonchain also noted that the last similar transaction was on the 8th of November 2015.
Source: X
Inflows and outflows drop
At press time, AMBCrypto could not confirm the reason for the transactions. This was because the Ethereum Foundation did not publicly disclose why it did the transfer.
However, market participants were divided about the intention. For some, the foundation plans to sell the coins.
But comments from another segment on social media opined otherwise. Despite the transfer, ETH’s price stayed above $3,500. In the meantime, we decided to check what was happening on-chain.
According to our analysis using Santiment, ETH’s exchange inflow was 1658, while its exchange outflow was 1762.
Though the difference in outflow and inflow was minimal, it was proof that more market participants had decided to HODL instead of selling.
If the outflow continues to outpace the inflow, then ETH’s price could reclaim $3,600. From a more bullish perspective, the value could get close to $4,000.
But in a situation where the number of ETH flowing into exchanges increases, the price might decline.
Source: Santiment
Time to stockpile ETH?
On the daily timeframe, the Accumulation/Distribution (A/D) indicator reflected that A had surpassed D. This was also evident in the market structure, as bulls dominated the charts.
Furthermore, Ethereum’s momentum showed that the price could rise higher if bulls defend the $3,334 support. However, the Awesome Oscillator (AO) displayed a red histogram bar.
This indicated that ETH’s price might retrace as the bullish momentum might slow down.
A highly bearish condition could force ETH below $3,200. However, if bulls neutralized the sudden bearish appearance, the altcoin value might rise toward $4,000.
Source: TradingView
Another indicator AMBCrypto looked at was the Liquidation Heatmap. The Liquidation Heatmap calculates the liquidation levels based on market data and different leverage levels.
With these, the indicator can help traders find good liquidity positions and identify regions with high liquidations.
At press time, the Liquidation Heatmap showed that millions of positions could be wiped out if ETH hits $3,550 again. In addition, the indicator also identified $3,120 as a good liquidity position.
Therefore, if ETH’s price decreases toward the $3,000 zone, long positions around $3,120 might be profitable.
Source: HyblockCapital
How much are 1,10,100 ETHs worth today?
Also, the indicator showed that the coast was clear for ETH to hit $4,000. If buying pressure continues to increase, ETH could reach the aforementioned price.
But if the market sentiment changes to the bearish side, ETH might get stuck.