Market veteran Ali Martinez has analyzed the dynamics of the Ethereum market following the approval of spot Ethereum exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). Martinez predicts that if a critical level is maintained, Ethereum could rise to $5,000.
The approval of multiple spot Ethereum ETFs has generated significant price movements for Ethereum. Traders and analysts are now discussing the potential impact of this development on Ethereum’s market dynamics. Martinez provided a detailed analysis on X, highlighting a shift in market trends.
Martinez pointed out a surge in Ethereum transfers to cryptocurrency exchanges, which often indicates increased trading activity. In the past two weeks, over 242,000 ETH have been moved to exchange wallets. As a result, exchanges now hold 13.69 million ETH as balance, representing 11% of Ethereum’s circulating supply. This influx of tokens could indicate that whales are rebalancing their portfolios, taking profits, or engaging in speculative trading.
One notable whale involved in these transfers is Jeffrey Wilke, one of Ethereum’s co-founders, who moved 10,000 ETH ($37.38 million) to the Kraken exchange. This move has sparked speculation that significant stakeholders are preparing to take profits or adjust their holdings in response to the ETF approval.
Martinez also highlighted the sentiments of industry pundits regarding the Ethereum market. Anthony Pompliano, a prominent figure in the industry, sees the approval of the Ethereum ETF as a significant milestone that could mark broader acceptance of the cryptocurrency industry. However, Martinez advises caution, suggesting that the increased deposits to exchange wallets could signal an impending sell-off or increased profit-taking activities.
Despite the uncertainty, a report from CryptoQuant confirmed that permanent ETH holders recently acquired over 100,000 ETH.
In terms of support and resistance levels, Martinez referred to the TD Sequential, which presented a sell signal on the daily chart with a green 9 candlestick. This signal suggests a potential retracement, possibly lasting four days or initiating a new downward phase before an uptrend resurgence.
Martinez also emphasized the importance of support and resistance levels in determining Ethereum’s price movements. According to the In/Out of the Money Around Price (IOMAP) metric, there is a significant demand zone between $3,820 and $3,700, where over 1.81 million addresses hold 1.66 million ETH. This zone could act as a strong support level, preventing a severe price drop. However, if Ethereum fails to hold this level, the next support zone is between $3,580 and $3,462, where 3.13 million addresses bought 1.50 million ETH.
On the upside, Ethereum faces a crucial resistance barrier between $3,940 and $4,054, where around 1.16 million addresses previously bought 574,660 ETH. Overcoming this resistance could be challenging, but if Ethereum manages to close above $4,170, it could invalidate the bearish momentum. Martinez believes that such a move could trigger a new upward phase, potentially pushing Ethereum’s price towards the $5,000 mark.
Currently, ETH is trading at $3,720, down 1.56% today but still showing a 20% gain over the past week. The daily RSI remains below 70, currently at 67, despite the recent uptick.
Disclaimer: This article provides informational content and should not be considered financial advice. The opinions expressed in this article are the author’s personal opinions and do not reflect the views of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.