Investors are growing cautious amidst the emergence of a significant sell signal near the $3,500 threshold.
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Ethereum (ETH), benefiting from Bitcoin’s recent upward momentum, faces a critical juncture, leading traders to proceed with caution as fresh data suggests possible changes in market dynamics.
On the 3-day chart, Ethereum showed a significant sell signal as it neared the crucial $3,500 resistance level. According to an analyst, this technical signal served as a warning for traders, advising prudent decision-making before executing substantial actions in the ETH market.
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Ethereum whales have been noted for significant activity as well. According to data from Lookonchain, a substantial transaction involving a wallet associated with the Ethereum Foundation has been observed.
Particularly noteworthy is the fact that this wallet, which had been dormant on Kraken since January 6, 2022, recently deposited 4,000 ETH (equivalent to $13.3 million) into the exchange.
Earlier, on January 6, the wallet had received a substantial sum of 39,006 ETH (approximately $130.6 million) from EthDev.
As of press time, the balance in the wallet stands at 33,006 ETH (around $110 million), prompting questions about the foundation’s strategic financial decisions and their potential impact on the market.
Traders and investors may perceive such actions as signs of uncertainty, potentially influencing market sentiment and affecting short-term price trends for ETH.
The prevailing sentiment may shift towards a bearish outlook as these developments raise doubts about Ethereum’s near-term prospects.
With sell signals and significant activities among influential holders, the market seems primed for heightened volatility.
So with the data above will you hold?
