- ETH continued to trade above $2,300 despite the transfer.
- The price might climb above $3,000 if market conditions improve.
According to Spot On Chain, Ethereum [ETH] was part of the cryptocurrencies let go by defunct crypto exchange FTX and its sister firm Alameda.
Based on the post, the firms sent 1,000 ETHs to Coinbase. However, the altcoin was not the only cryptocurrency affected by the sale.
Others included ALPHA, POWR, NEXO, and more. The sale was one of the numerous ones FTX and Alameda had been involved in recently.
As AMBCrypto reported earlier, the moves were in line with the go-ahead to offload some of their assets to pay back creditors and customers affected by the exchange crash.
#FTX and #Alameda moved out $3.32M worth of 8 tokens ~5hrs ago:
• 1K $ETH ($2.3M) to #Coinbase
• 4.43M $ALPHA ($411K) to #Binanceand $609K in $POWR, $SNT, $OXT, $RLC, $NMR, $NEXO to #Coinbase & #FalconX.
Overall, they unloaded $15.1M in 21 assets to CEX in the past week ?… pic.twitter.com/n3geZiqKjB
— Spot On Chain (@spotonchain) February 6, 2024
ETH works under pressure
However, ETH has been able to resist the selling pressure. At press time, the price of the altcoin was $2,321. According to the 4-hour chart, the 20 EMA (blue) and 50 EMA (yellow) were around the same area.
This trend suggested that ETH’s next direction looked indecisive. As such, the price might keep hovering around the $2,300 region.
In terms of the Accumulation/Distribution (A/D), the indicator showed that there has been more accumulation than distribution.
This was confirmation that the participants were taking advantage of the dip and buying Ethereum at a discount.
If accumulation intensifies more than it has recently done, then ETH’s price could rise to $2,500 in the short term.
On the other hand, a decline in the A/D would suggest distribution. If this is the case, ETH might become bearish while the price might fall as low as $2,215.
However, this might not happen because of the signals shown by the Money Flow Index (MFI).
Source: TradingView
The MFI swings between 0 and 100. Values above 80 suggest that a cryptocurrency is overbought. On the other hand, a reading below 20 implies an oversold point.
In Ethereum’s case, the MFI was 64.25, indicating that the level of buying pressure was enough to keep ETH above $2,300.
Fair enough! But more could be on the way
AMBCrypto proceeded to check the Market Value to Realized Value (MVRV) ratio. This ratio gives an idea if a cryptocurrency’s value is fair, undervalued, or overvalued.
Values of 3.7 indicate price tops. But when the MVRV ratio is less than 1, it implies that the price might have hit the bottom.
How much are 1,10,100 ETHs worth today?
ETH’s MRVR ratio was 1.51 according to data from Glassnode. This ratio implies that the altcoin was changing hands at a fair value during press time.
However, this also means that ETH’s long-term potential remains a bullish one. Should the market conditions improve, ETH’s price might jump and a move toward $3,500 could be plausible.
Source: Glassnode
