Historically, the Ethereum Foundation has been a bellwether for upcoming corrections in the Ethereum market landscape. Recently, the base made an unexpected move by liquidating approximately $13 million worth of Ethereum.
Historically, the Ethereum Foundation has been a bellwether for upcoming corrections in the Ethereum market landscape. Recently, the base made an unexpected move by liquidating approximately $13 million worth of Ethereum.
Ethereum, on a daily time frame, shows a strong uptrend characterized by higher and more consistent highs and lows. The moving average lines are positioned in a way that suggests sustained bullish momentum. The 50-day MA (in blue) is above the 100-day MA (in orange), which in turn is above the 200-day MA (in black), a setup that traditionally signals an uptrend.
Furthermore, Ethereum price has been trading comfortably above these MAs, reinforcing the strength of the uptrend. Further analysis reveals that Ethereum price recently reached a peak, followed by a slight pullback. While these pullbacks are normal within an uptrend, they often present moments of tension as the market anticipates the next move.
The Relative Strength Index is near overbought territory, indicating that the market may be due for a correction. This is where the recent operation of the Ethereum Foundation becomes especially relevant.
If we follow history, large foundation transfers have been associated with previous market crises. While the direct correlation between the foundation’s actions and the market response cannot be verified with absolute certainty, experienced investors are likely to proceed with caution.
The market reaction to the liquidation of the Ethereum Foundation will be telling. If the price holds above the key MAs, it could indicate that the bull run still has legs. However, if the price starts to close below these MAs, particularly the 50-day MA, it could signal the start of a larger correction.
