This Historical Ethereum Top Signal Is Yet To Appear This Cycle
June 25 2024 - 8:30PM
NEWSBTC
On-chain data suggests this signal that has historically occurred
around Ethereum peaks has yet to appear in the current cycle.
Ethereum Foundation Wallets Haven’t Made Large Outflows This Cycle
So Far In a new post on X, the market intelligence platform
IntoTheBlock has discussed a pattern that Ethereum has witnessed
alongside its previous market peaks. The pattern in question is
related to the netflows for the wallets associated with the
Ethereum Foundation. The ETH Foundation is a non-profit entity
supporting the cryptocurrency and its ecosystem. Related Reading:
Shiba Inu, Solana, & Cardano Are All Seeing Buy Signal: Analyst
Below is the chart shared by the analytics firm that shows the
trend in the net amount of ETH (in USD) moving in or out of the
wallets connected to this organization. As is visible in the above
graph, the netflows for the Ethereum Foundation have generally
taken negative values during the past bull markets. Negative
netflows naturally correlate to a net amount of ETH movement away
from the wallets connected to the company. Interestingly, the
indicator has seen especially large red spikes around the tops of
the cryptocurrency. As IntoTheBlock explains, Historically, during
each bull market, the Foundation has strategically sold substantial
amounts, often aligning these sales almost perfectly with market
peaks. The chart shows that the indicator’s value has been more or
less neutral during the past few months, even though the asset’s
price has increased significantly. This suggests that the Ethereum
Foundation hasn’t been making any major sales during this bull
market. Given the historical pattern, this may be a sign that a top
isn’t yet here for the cryptocurrency, or at least the organization
doesn’t judge it to be so. Another explanation, however, could be
that the non-profit entity has changed its strategy for this new
cycle, meaning that the past trend would no longer hold the same
weight. In some other news, the official email of the Ethereum
Foundation was recently compromised, as Tim Beiko, one of the ETH
developers, had revealed in an X post. Related Reading: Bitcoin
Forms Bullish Signal That Led To At Least 60% Jump Last 3 Times The
developer had noted that the organization was trying to reach out
to SendPulse, an email automation service used by the firm, to
resolve the problem. In a follow-up post, Beiko confirmed that the
team sent out an update to subscribers of the Ethereum Foundation
blog, warning them that the previous email, announcing a “staking
platform” by the organization, resulted from the compromise. “We
should have locked down all external access, but we are still
confirming,” said the developer in the post. ETH Price Ethereum
plunged under the $3,300 level yesterday, but the asset has since
recovered above $3,400. Featured image from Dall-E,
IntoTheBlock.com, chart from TradingView.com
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