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Ethereum's price is consolidating above the $2,700 level, suggesting that it could rise once again. In the previous week, the price of this cryptocurrency attempted on various occasions to move past the resistance at $2,800. But it was stuck in consolidation with support from vital technical levels.
Ethereum has remained above $2,650 since yesterday, forming the base for a steady move upwards. The latest breakthrough above the resistance saw the crypto peak at around $2,820. However, the price faced resistance near $2,780 and corrected. Despite this, it trades above $2,720. On the hourly chart of ETH/USD, it also forms a bullish trend line with support around the $2,720 level. This hints at another ETH try, breaking to the upside if it clears the current minor resistance near $2,780.
Meanwhile, if Ethereum prices successfully clear the $2,780 resistance, they may find it hard to clear $2,820. A clear break above the resistance level could encourage more upsides toward the $2,880 level, followed by an eye on $2,950. As long as Ethereum remains strong in clearing above $2,950, its prices may retest the psychological level of $3,000, attracting huge market interest.
However, there could be a fresh downside if prices fail from here without breaking above $2,780. Under these conditions, Ethereum's first level of support would be located near the $2,720 mark, while extended substantial support would increase to the vicinity of $2,675. If Ethereum moves below this price level, it may continue falling toward the support area around $2,620 and lower to the $2,550–$2,500 area, if the downside momentum rises further.
Recent market movements in Ethereum occurred just days after the Ethereum Foundation made a significant transfer of 35,000 ETH into a Kraken exchange wallet. This current transfer parallels the 2020 event when the foundation sold 100,000 ETH, according to reports. After this move, the price of Ethereum jumped 6x over the next few months. It is too early to speculate about a similar jump this time, though.
Executive Director Aya Miyaguchi explained that the recent transfer was, in fact, a typical part of managing the treasury and did not signal an event of sale. Miyaguchi elaborated that the foundation has an estimated budget of about $100 million a year. This money is nearly entirely given out as grants and salary, most of which had to be converted to fiat. She says the transfer is being done to restore financial symmetry and the open possibility to gradually selling their tokens in the market.
Concurrently, a dormant Ethereum wallet was activated after almost a decade. Inside were 2,000 ETH worth $5.5 million. The wallet's awakening has drawn attention to cryptocurrency market dynamics since such movements can influence market sentiment and price volatility.
