Rapid Ethereum Ether Accumulation: Could a Major Adjustment be on the Horizon?
The upcoming Federal Open Market Committee (FOMC) meeting, scheduled for today, was initially expected to lead to a short-term correction in the US interest rates and potentially the crypto market. However, the impact of the FOMC meeting on Ethereum's price is not discussed in this article.
In the cryptocurrency world, large investors, known as whales, have sold off a significant amount of Ethereum (ETH) tokens. Over the past few days, these investors, including Grayscale and Lido, have offloaded 90,000 ETH tokens, worth over $400 million. This decrease in their collective holdings has brought their total down to 15.4 million ETH tokens, representing 12.7% of the asset's circulating supply.
The current price of Ethereum has been hovering around $4,500 in the past two days, although it briefly dipped below $4,300 at the beginning of September. This selling effort by large investors could potentially trigger a price decline, assuming demand remains the same or decreases.
Despite this, analysts still see upside potential for Ethereum. Analyst Ted has predicted that Ethereum could reach $4,700 if it holds its current support zone of $4,500. This prediction does not imply a new all-time high, as that would require a price above the current record.
Analyst X YZ has identified a bullish cross on Ethereum's price chart, suggesting potential gains and a possible push above $5,000. This prediction was made based on similar double-digit pumps following such setups in the summer.
However, smaller players may also exit the Ethereum ecosystem, potentially following the actions of the large investors. This could potentially impact the price of Ethereum in the short term.
Despite the potential short-term correction suggested by some analysts for the crypto market due to the FOMC meeting, the meeting is expected to lower interest rates in the US and is interpreted as bullish in the long term for the crypto market.
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