News of a wallet allegedly associated with the Ethereum Foundation liquidating $13.3 million worth of ETH has led to speculation within the cryptocurrency market. Many investors are contemplating the potential impact of this transaction on the price of Ethereum, the world’s second-largest cryptocurrency by market capitalization.
While such actions by the Ethereum Foundation are often seen as precursors to market shifts, Ethereum currently exhibits bullish signals despite concerns about a possible price decline.
As of now, Ethereum is on an upward trajectory, displaying a strong uptrend characterized by consistently higher highs and lows. With Ethereum trading at $3,550, it has witnessed a 14.6% increase over the past seven days, boasting a market cap of $420 billion and a crypto market dominance of 17.8%, according to CoinGecko.
Although corrections are natural in an uptrend, investors are eagerly awaiting the next move as the weekly Relative Strength Index (RSI) approaches the overbought zone at 89.95, signaling a potential correction in line with the Ethereum Foundation’s recent sell-off.
In the broader market context, Bitcoin has surged over 28% in the past week, nearing its all-time high of $69,000 set in November 2021, with the current price hovering around $67,000.
Meanwhile, the Ethereum network is gearing up for the activation of the Dencun update, a combination of the Cancun and Deneb updates, scheduled for March 13. This upgrade aims to significantly reduce layer-2 transaction fees while enhancing Ethereum’s scalability, efficiency, and security, following its successful activation on test networks announced by the Ethereum Foundation on February 27.
Last month, Ethereum witnessed significant growth, attracting 1.8 million new users to its network. Santiment’s metric tracking funded Ether wallets revealed a surge, with total ETH holders reaching 115.5 million addresses, surpassing Bitcoin which experienced a decline of 70,000 wallet addresses during the same period.
Amid Ethereum’s positive trajectory, multiple issuers are seeking approval for spot Ethereum ETFs, akin to the success of spot BTC products. However, SEC delays and commissioner comments suggest challenges ahead, with decisions postponed until May at the earliest, potentially influencing other issuers including BlackRock, Franklin Templeton, Grayscale, and Invesco Galaxy.
The approval of spot Bitcoin ETFs in January marked a significant milestone, signaling a shift towards legitimizing crypto adoption and investment in the United States, following a Grayscale lawsuit against the SEC.
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