Genesis Trading Transfers $126M in Ethereum: What’s in Store for ETH?

Genesis Trading has executed significant Ethereum transactions, moving approximately $126 million worth of ETH.

The firm transferred 27,500 ETH (around $87 million) to an address starting with 0xcbCF, and another 12,500 ETH (about $40 million) to an address beginning with 0x72FE.

These transfers are believed to be linked to bankruptcy liquidation procedures.

Ethereum's Price Struggles

Ethereum’s price has been volatile despite the recent introduction of ETH ETFs.

The cryptocurrency has struggled to maintain levels above $3,500 and is nearing a crucial support level at $3,100.

The market reaction appears to follow a “buy-the-rumor-sell-the-news” pattern.

Market Performance and Analysis

Ethereum briefly recovered to $3,143 but is trading below a broken ascending trendline.

This could encourage bearish traders to increase short positions, potentially pushing ETH below $3,000.

To reverse the bearish trend, ETH must reclaim the trendline as support and aim for levels above $3,500.

RSI Divergence and Forecast

The short-term forecast shows concerning RSI divergence.

A break above this divergence is essential for a solid recovery.

If ETH fails to reclaim the $3,200 support level, it may risk falling below the $3,000 mark.

Broader Market Context

These developments occur amid broader economic and market trends.

The Federal Open Market Committee (FOMC) has signalled a dovish stance, with a September rate cut fully anticipated.

Despite positive sentiment in equities, the crypto market has experienced a broad sell-off.

Strategic Considerations

Traders are monitoring ETH ETF outflows and potential supply pressures from entities like Mt. Gox and the US government.

Some analysts recommend using strategies like Accumulators to buy ETH below $3,000, considering a potential range-bound market period.