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Genesis Trading Moves $126M In Ethereum, What’s Next For ETH?

Published

5 months ago

August 2, 2024

Genesis Trading, a major player in the digital asset space, executes significant Ethereum transfers amidst a backdrop of price volatility and market uncertainty. With over $126 million worth of Ethereum on the move, potentially as part of bankruptcy proceedings, the crypto community is on high alert.

This development coincides with Ethereum’s struggle to maintain key price levels following the recent launch of ETH ETFs, painting a complex picture of the second-largest cryptocurrency’s immediate future.

Genesis Trading’s Ethereum Transfers

In a notable development in the cryptocurrency market, Genesis Trading has moved a substantial amount of Ethereum (ETH), totaling approximately $126 million. The company transferred 27,500 ETH (valued at about $87.09 million) to an address beginning with 0xcbCF, and an additional 12,500 ETH (worth roughly $39.59 million) to an address starting with 0x72FE. These transactions are suspected to be part of bankruptcy liquidation procedures.

This movement comes at a time of uncertainty for Ethereum’s price. Despite the recent launch of Ethereum ETFs, which was anticipated to boost the cryptocurrency’s value, ETH has struggled to maintain its position above $3,500 and is now approaching a critical support level at $3,100. The launch appears to have followed a classic “buy-the-rumor-sell-the-news” pattern.

Ethereum’s Market Performance

Market analysts note that while ETH briefly recovered to $3,143, trading below the broken ascending trendline may embolden bears to increase short positions, potentially pushing the price below $3,000. For a bullish outlook to resurface, ETH needs to reclaim this trendline as support and target the area above $3,500.

Adding to the bearish sentiment, the short-term Ethereum price forecast reveals a concerning RSI divergence. A break above this divergence is necessary to validate any solid recovery. Failure to recapture the $3,200 support level by day’s end could increase the risk of ETH sliding below the psychologically important $3,000 mark.

Ethereum’s price has been struggling despite the recent launch of ETH ETFs. The cryptocurrency has failed to maintain its position above $3,500 and is approaching a critical support level at $3,100. This performance suggests a “buy-the-rumor-sell-the-news” pattern following the ETF launch.

For a bullish outlook to return, ETH needs to reclaim this trendline as support and target the area above $3,500. The short-term forecast also shows a concerning RSI divergence, indicating that ETH needs to break above this divergence to validate any solid recovery.

Also Read: Grayscale Ethereum ETF Outflows Cross $2 Billion, More Pain Ahead?

Broader Market Context

These developments are occurring against the backdrop of recent economic events and market trends. The Federal Open Market Committee (FOMC) meeting signaled a dovish stance from the Fed, with a September rate cut now fully priced in. However, this positive sentiment in equities didn’t translate to the crypto market, which saw a broad sell-off.

Traders are closely watching daily ETH ETF outflows and potential supply pressures from sources like Mt. Gox and the US government. Some analysts suggest using strategies like Accumulators to systematically buy ETH below $3,000, given the possibility of a range-bound market period. These factors collectively create a complex picture for Ethereum’s immediate future, with both challenges and potential opportunities for investors and traders.

Also Read: Coinbase (COIN) Stock Surges 3% With Strong Institutional Activity in Q2