Ethereum Foundation Spotted Cashing Out $3 Million —Can ETH Avoid Another Drop?

Key Insights:

• Ethereum (ETH) price dropped below the $1,600 level on Monday as markets reacted negatively to insider-controlled wallets withdrawing millions. 
• On-chain analysts spotted Ethereum Foundation-linked accounts selling 1,700 ETH through Kraken on Monday. 
• On October 3, Ethereum exchange netflows had reached 79,000 ETH, the highest since May 16. 

On-chain analysts spotted an Ethereum Foundation-linked wallet address selling 1,700 ETH through Kraken on Monday. This raised market-wide concerns of an imminent price correction. On-chain analysis examines the key factors that could impact ETH prices in the weeks ahead. 

Ethereum Foundation Cashed Out 1,700 ETH Through Kraken Exchange 

Ethereum (ETH) price dipped below the $1,600 mark on October 9, a move attributed to significant withdrawal from a wallet associated with the Ethereum Foundation.

The Ethereum wallet connected to the foundation moved 1,700 ETH (equivalent to $2.73 million) to the Kraken exchange on Monday, as reported by blockchain analytics platform Arkham Intelligence. 

Historical data indicates that previous Ethereum Foundation outflows often coincided with local price peaks and resulted in notable price corrections. 

As depicted in the chart below, ETH price experienced a 14% drop within a week after the the foundation sold 14,999ETH for $30 million on May 6

Following this recent $2.73 million outflow, ETH price experienced a 2% drop, falling below the critical $1,600 support level on Monday.

If the ongoing bearish pattern mirrors the trend observed after the $30 million transaction in May, Ethereum price could further decline toward $1,500 in the coming weeks.

Furthermore, Ethereum exchange netflows reached a 5-month high of 79,000 ETH on Oct 3, just days before this Ethereum Foundation transaction. 

This indicates a growing bearish sentiment within the Ethereum ecosystem, with more holders potentially seeking to liquidate their positions in the short term.

Without a significant shift in the overall market sentiment, Ethereum’s price will likely face downward pressure in the near future.

ETH Price Prediction: The $1,500 Could Prove Daunting for the Bears

In the daily timeframe, Ethereum (ETH) is currently priced at $1,590.  The RSI is at 40.75, indicating a neutral position, suggesting room for price movement in either direction.

The Immediate support is at the lower Bollinger Band around $1,554.40. But if Ethereum price falls below that, the psychological support at $1,500 can prevent further downswing.

But if the trend flips bullish, ETH price may encounter resistance at $1,600, which is a psychological resistance. Beyond that, the upper Bollinger Band at $1,606.70 and the next psychological level at $1,700 could act as resistance zones.