Crypto Market Upheaval: Impact of Ethereum Foundation's $13 Million Sale, Watch Out for a Sharp Correction?

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Bittime - Recently, the Ethereum Foundation, the non-profit organization behind the Ethereum blockchain platform , caused a stir in the market with an unexpected move: the sale of 13 million US dollars worth of Ethereum. This action, although seemingly small compared to Ethereum's huge market capitalization, has fueled speculation and concerns about a potential upcoming market correction.

Ethereum Foundation History Repeating?

Historically, the Ethereum Foundation has been known as a “correction marker” in the Ethereum market. Massive selling of Ethereum by foundations in the past has often been followed by significant price drops. For example, in November 2018, the foundation sold 70,000 ETH, which contributed to Ethereum's price dropping by 80% in the following months.

ETH Price Technical Analysis

Despite the concerns, Ethereum's technical indicators currently still show a strong bullish trend. Ethereum price has broken through a major resistance level at $3,000 and continues to move upwards. The 50-day, 100-day, and 200-day Moving Averages (MA) indicate continued bullish momentum.

ETH Price Today

Source: Bittime.com

On March 4 2024, the price of ETH (Ethereum) was at IDR 55,494,964 per coin, up 2.94% in 24 hours, 3.28% in the last week and 13.97% in the last 30 days.

Hidden Concerns

However, behind this bullish trend, there are several factors that can trigger a correction. One of them is the Relative Strength Index (RSI) which is approaching overbought territory, indicating that the market may be overheated and ready for a correction.

Impact of Foundation Sales

The foundation's sale of $13 million worth of Ethereum could strengthen the correction's momentum. Investors, especially experienced ones, will be closely watching how Ethereum price reacts to this sell-off.

Possible Scenarios

There are two possible scenarios:

1. Limited Correction: If Ethereum price can stay above the 50 day MA, the correction will likely be limited and the bull run will continue.
2. Major Correction: If Ethereum price breaks below the 50-day MA, a correction is likely to be larger and the bull run may come to a temporary halt.

Message to Investors

The Ethereum Foundation's unexpected move has increased market volatility and raised questions about the future of Ethereum's bull run. Investors should be careful in their decisions and consider all factors that can influence the price of Ethereum.

The Importance of Diversification

Diversifying your investment portfolio is an important step to reduce risk in situations like this. Investors should not only focus on Ethereum, but also consider other assets such as Bitcoin, altcoins and traditional assets.

Conclusion

The $13 million sale of Ethereum by the Ethereum Foundation has made headlines and fueled speculation about an impending market correction. Even though technical indicators are still showing a bullish trend, investors should remain vigilant and consider all factors that could influence Ethereum's price. Portfolio diversification is key to minimizing risk and maximizing opportunities in this volatile environment.

How to Buy Ethereum (ETH) on Bittime

You can buy and sell  Ethereum (ETH)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Ethereum (ETH)  is available on Bittime with  the market pair ETH/IDR . To be able to buy  ETH/IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Learn  the complete guide on how to buy Ethereum (ETH) on Bittime . 

Monitor price chart movements  for Ethereum (ETH) , Bitcoin (BTC) , Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.  

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DISCLAIMER : This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.