Ethereum Price Forecast: ARB Foundation’s 90,000 ETH Move Sparks Panic, But Can Bulls Step In?

A massive transfer of Ethereum (ETH) has triggered alarm in the crypto market. In the past 24 hours, an address linked to the ARB Foundation, an organization known for its efforts in mental health outreach, has reportedly sent 90,000 ETH to the Binance crypto exchange. This move has fueled widespread speculation about a potential ETH dump, causing concern among traders and investors.

Massive ETH Transfer Sparks Concerns

The Data Nerd, a well-known on-chain tracker on the social media platform X, observed a significant ETH deposit by the ARB Foundation’s wallet during the final hours of August. The wallet initially deposited 60,000 ETH, worth approximately $150.33 million. 

This deposit transferred the total ETH to Binance by this address to 90,000 ETH, valued at around $226.02 million. The sudden and substantial transfer has led to fears of an imminent sell-off, contributing to the already volatile market conditions.

Current Market Conditions and Price Movement

As of time of writting, Ethereum is trading at $2,479.89, reflecting a 1.64% decrease in the past 24 hours. The 24-hour trading volume for ETH stands at $7,976,843,204, indicating active trading but with downward pressure on the price. 

Ethereum maintains its position as the second-largest cryptocurrency by market capitalization, with a current market cap of $298,345,156,497. The circulating supply of Ethereum is 120,305,767 ETH, while the maximum supply remains unspecified.

Ethereum’s price movement has shown a general downward trend, with fluctuations throughout the observed period. Starting at a price level of $2,521, the value remained relatively stable before experiencing a sharp decline around midnight on September 1st. 

Source: CoinMarketCap

After this drop, the price attempted a minor recovery but continued to trend downward, reaching a low point near $2,460. The latest price of $2,481 suggests a slight recovery from the lowest point, but the overall sentiment remains bearish.

The daily candlestick chart of Ethereum on Binance demonstrates that the value of the asset has been constantly declining. From the technical analysis point of view, the MACD, a market momentum indicator, presents a bearish signal. 

 The MACD line (blue line) is below the signal line (orange line) and both of it are in the negative region (-89.47 and -91.65 respectively). This means that bearish pressures are prevalent at the moment and may keep bearing pressure on the price.

Source: TradingView

Additionally, the RSI (Relative Strength Index), a tool used to assess whether an asset is overbought or oversold, currently stands at 42.35. This reading places Ethereum closer to the oversold threshold, suggesting potential downside risk. 

However, it is still above the critical oversold level, indicating that while the market may be approaching a point where buyers could step in, further declines are still possible.