This move holds significance since a transfer of that magnitude has the power to move the market in one or the other direction.
Taking into account the general bearish outlook of the recent past, a possible dump of 20,000 ETH could very well initiate a rapid downward move — causing traders to panic sell and liquidating possible longs.
Additionally, these ETH coins can serve as sell walls — preventing the price from moving above a certain level.
Do the technical indicators support this type of move?
A look at the weekly moving averages (MA) supports the possibility of further price decreases.
A bearish cross has just occurred between the 10- and 20-week MAs.
The Ethereum price is trading below and facing resistance from both.
Additionally, the MACD has been gradually losing strength since the beginning of July.
It is below the zero-point and has almost made a bearish cross. The cross currently looks very likely to occur and would confirm the downtrend.
Therefore, the MACD and moving averages support further price decreases.
Looking at the previous movement, we can see that Ethereum is inside a significant support area — found around $160.
A strong dump of Ethereum could cause a breakdown of this support area and a movement towards the second one at $140.
According to our analysis, this looks likely.
Furthermore, a dump of the aforementioned 20,000 ETH would likely accelerate this decrease — causing ETH to reach the second support area in the very near future.
Do you think Ethereum will begin a downward move? Drop your thoughts in the comments below!
Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.
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