ETH acquisition by large firms seen above $4K—chart analysis
Shares of Ether (ETH) appear abovebought but hesitant bears haven’t triggered widespread selling prompts. Large-cap crypto firms sharply increased their holdings following the resignation of co-founder Vitalik Buterin.
While BitMine Immersion Technologies claimed the title of largest publicly held ETH entity after reporting 300,657 ETH holdings, the state was short-lived. This title was quickly overtaken by SharpLink Gaming after the company purchased approximately 60,200 ETH to reach a total of 360,807 ETH.
Could corporate buying power push the price higher? Insightful chart analysis may offer answers.
ETH price technical breakdown
On Monday, ETH prices dipped below the psychologically important $3,860 threshold and subsequently breached the $3,745 support level (a 1.2% decline). This pattern is interpreted as profit-taking from cautious buyers.
The primary outlook suggests a potential drop toward the 38.2% Fibonacci retracement level around $3,494. If prices find support at this level and hold above it, buying interest may trigger a rally toward the psychologically significant $4,094 mark.
Conversely, a confirmed break below $3,494 would likely send prices lower toward the 50% retracement at $3,381. Additional downside could reach the 20-day exponential moving average ($3,234), where a close below it would favor bears further, targeting $2,904.
Near-term technical indicators
The 20-day exponential moving average on the four-hour chart has flattened, coinciding with a drop in the Relative Strength Index (RSI) below 50. This signals an equilibrium between buying and selling pressure. Clearing the recent high above $3,860 would be required to firmly initiate a significant price appreciation move.
However, if prices slip below the 50-day simple moving average, this could provide a catalyst for bears seeking a renewed downtrend, potentially sending prices back toward $3,477 and then further to $3,361.
*Disclaimer:* This article does not constitute investment advice. Trading and investing in digital assets carry substantial risk. Consult independent financial advice before making decisions.
