• A hedge fund has reaped the opportunity to buy the recent Ethereum price dip.
  • Ether has recently dropped to a swing low of $3,675.
  • Speculators believe the fund’s CEO caused fear, uncertainty and doubt to drive ETH price lower.

While Ethereum price has risen significantly this year, the token has recently suffered several periods of volatility lately, reaching a swing low at $3,675. Ethereum fear and greed index is displaying a reading of 34, indicating fear which suggests that the token may be slightly oversold. A hedge fund has taken the opportunity to buy the ETH dip, pouring over $456 million into the cryptocurrency in less than two weeks.

Hedge fund buys the Ethereum dip

Cryptocurrency hedge fund Three Arrows Capital has purchased $56 million worth of Ether earlier on December 14. Etherscan shows that the firm, founded by Su Zhu, has transferred 14,833 ETH from Binance and Coinbase to its wallet.

This is not the first time the hedge fund has purchased a large amount of Ethereum. Last week, Three Arrows Capital transferred $400 million in ETH from crypto exchanges FTX, Binance and Coinbase to its wallet. 

Crypto reporter Colin Wu first spotted the transactions and Zhu stated that he will continue to “bid hard on any panic dump,” and that purchasing 100,000 ETH is “dust,” suggesting that more purchases in Ether are yet to be made.

However, the founder of the crypto hedge fund has been involved in controversy in the crypto community, as he revealed in November that he “abandoned Ethereum despite supporting it in the past.”

His statement attracted attention from the crypto industry, and he has since softened his stance and even turned it around and said, “I love Ethereum and what it stands for.”

Speculators in the crypto market suggested that Zhu tried to create fear, uncertainty and doubt to drive Ethereum price down to buy more ETH at a lower price. 

Ethereum price struggles with major headwind at $3,900

Ethereum price has rebounded slightly after a major drop toward the swing low at $3,675 on December 13. 

ETH continues to be sealed within a symmetrical triangle but is struggling to battle with resistance at the 200 twelve-hour Simple Moving Average (SMA) at $3,900 as buyers are slowly entering the market.

An additional obstacle may appear at the 38.2% Fibonacci retracement level at $3,989, then at the 21 twelve-hour SMA at $4,112. A spike in buy orders may see Ethereum price tag the 50% retracement level at $4,139 then head toward the upper boundary of the prevailing chart pattern, coinciding with the 61.8% Fibonacci retracement level at $4,289.

ETHUSDT

ETH/USDT 12-hour chart

If Ethereum price slices above the aforementioned line of resistance, a 26% bounce toward $5,404 is on the radar.

If selling pressure increases, Ethereum price may discover immediate support at the lower boundary of the governing technical pattern at $3,712 before sliding toward the swing low at $3,675.

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Crypto bloodbath hasn’t even started yet

Crypto bloodbath hasn’t even started yet

Bitcoin price, Ethereum and other cryptocurrencies are on the backfoot after the massive slaughter that happened on the trading floor on Wall Street yesterday. Instead of cleaning up the pink sheets from the floor, the cleaning staff are probably busy sweeping up plenty of burned-out traders that got annihilated overnight as the Dow Jones printed its worst performance since June 2020.

More Bitcoin News

Dogecoin founder says crypto investors are clueless while DOGE price crumbles under pressure

Dogecoin founder says crypto investors are clueless while DOGE price crumbles under pressure

Dogecoin’s co-founder advises crypto investors to perform actual research and stay informed about their crypto investments. While the meme coin crumbles under pressure, analysts find a bullish pattern that could drive a rally in Dogecoin. 

More Dogecoin News

Is Do Kwon going to get arrested after Terra's LUNA price collapse?

Is Do Kwon going to get arrested after Terra's LUNA price collapse?

The collapse of Terra's LUNA price and algorithmic stablecoin TerraUSD (UST) has sparked outrage in the crypto community. Institutions and retail investors suffered significant losses when $40 billion in LUNA and UST’s market value was destroyed within a week. 

More Terra News

If you haven’t sold yet, XRP will give you another chance before it dumps to $0.19

If you haven’t sold yet, XRP will give you another chance before it dumps to $0.19

XRP price is in a rut as it followed Bitcoin and other altcoins into a crash after the LUNA-UST debacle. Ripple, on the other hand, is relentlessly fighting against the US Securities and Exchange Commission’s (SEC) allegations and to prove that XRP token is not a security.

More Ripple News

Bitcoin: Multiple scenarios arrive at the same bearish conclusion

Bitcoin: Multiple scenarios arrive at the same bearish conclusion

Bitcoin price shows interesting setups from multiple time frames that hint at a confluence. This convergence occurs for the short-term bullish outlook as well as the macro bearish scenario for BTC. 

Read full analysis

BTC

ETH

XRP