The price of Ethereum (ETH) has lost momentum just above $1,800, dampening investor optimism for a potential rise above $2,000. Although declines have been minimal below the immediate support/resistance level at $1,800, bulls lack the momentum to resume the upward trend.
A recent report of Ethereum co-founder Vitalik Buterin transferring 100 ETH to Coinbase has raised concerns about the future of the ecosystem. The transaction, worth approximately $181,000 at the time, was first mentioned by a Chinese reporter. This transfer from Buterin's holding address, vitalik.eth, has sparked speculation about the motives behind the move.
This is not the first time Buterin has transferred his Ethereum holdings. He has previously stated that he has not sold any Ether for personal gain since 2018, instead choosing to donate it to charities, non-profit organizations, and other projects. However, some members of the community remain skeptical and believe there may be more to these transfers than meets the eye.
The lack of transparency regarding Buterin's transactions is adding to the uncertainty surrounding Ethereum's future. To regain investor confidence in the upward trend, Ethereum must reclaim the $1,800 level. However, based on the Relative Strength Index (RSI) retreating from the overbought region, it is likely that the price of Ethereum will slide significantly below $1,800. The support at $1,740 may provide the necessary liquidity for a larger breakout towards $2,000.
As Ethereum rebounds above $1,800, traders will be closely watching the descending trendline that halted the bullish momentum in October. A successful breakout at this price point is crucial to affirm the positive outlook and continuation of the uptrend. The next key level to watch is the seller congestion at $1,900, which will either pave the way for a climb to $2,000 or result in a period of consolidation. There is also the possibility of a correction back to $1,800 or even a lower support area around $1,740.
In conclusion, the recent transfer of ETH by Vitalik Buterin has raised concerns and added to the uncertainty surrounding Ethereum's future. The price of Ethereum is currently stalling above $1,800, and it remains to be seen whether it can regain momentum and continue its upward trend. Traders should closely monitor key levels and indicators to assess the future direction of Ethereum.
