Mystery of $11M ETH Selloff disclosed; ETH/USD recovered strongly
- Ethereum co-founder cashed out his ETH coins on Christmas eve.
- ETH/USD has recovered from the recent slump.
ETH has been one of the best performing altcoins out of top-20 on the weekend. The second-largest digital asset has nearly 5% in recent 24 hours and stayed unchanged on Monday in Asia. At the time of writing, ETH/USD is changing hands at $135.20, off the Sunday's high of $137.95.
The cryptocurrency market was agitated by the news that someone sent 90,000 on cryptocurrency exchange Kraken on the Christmas eve. The community suspected that the transaction was initiated by Ethereum creator Vitalik Buterin; however, it was another Ethereum co-founder, Jeff Wilcke, who was trying to sell his coins during the holiday period.
Later Wilcke confirmed the transaction and said that he needed the money for his new game. He has been inactive on Ethereum's GitHub since March 2019, and many experts believe, that he has effectively left the project and cashed out his share of coins. Despite the sell-off, Wilcke still owns a lot of ETH.
ETH/USD: technical picture
A sustainable move above $130.00 is a positive development for ETH/USD; however, we will need to see a strong recovery towards $139.50-$140.00 area for the upside momentum to gain traction. This area includes SMA200 (Simple Moving Average) 4-hour, the coin has been trading below this line since November 18. Once it is out of the way, the upside is likely to gain traction with the next focus on $149.30 (SMA50 daily) followed by the psychological resistance of $150.00.
On the downside, a sustainable move below $130.00 will bring sellers back to the market. The next support is seen on approach to $128.00. A confluence of SMA50 and the middle line of the Bollinger Band on 4-hour chart may slow down the downside momentum and initiate the recovery, However, if it is cleared, December 27 low of $122.30 will come into focus, The next support comes at $121.50 ( the lower line of 4-hour Bollinger Band) and psychological $120.00 that separates us from the decline towards the lowest level of 2019 reached at $116.40 on December 18.
ETH/USD, 1-hour chart
Author
Tanya Abrosimova
Independent Analyst
