- Major Ether investors have transferred nearly $200 million to exchanges in three days
- Ethereum price broke above $250 to print a new 5-month high
- A bull flag chart pattern has been activated, targeting a move towards $380 in 2020
Ethereum (ETH/USD) price broke above the $250 resistance line yesterday, paving the way for a more substantial move higher in the coming weeks and months. A data analytics platform also reports that the whales transferred a high amount of ETH to exchange wallets.
Fundamental analysis: Higher volatility incoming
Santiment, a data analytics platform, reports that whales have recently transferred a high amount of ETH to exchange. Accordingly, some major Ether (ETH) investors have transferred nearly $200 million to exchanges in three days, and higher price volatility could be expected.
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The amount of transferred ETH matches the non-exchange wallet balances that dropped by roughly that figure, suggesting that whales were preparing to sell or trade Ethereum collectively.
“Nearly 700K $ETH were moved by top 100 whales in the past 3 days. Over this time, the combined balance of the top 100 non-exchange ETH addresses shrank by almost 700K ETH, or about ~$182.7M,” Santiment wrote.
“This was likely pre-pump positioning & a forewarning of the pump.”
ETH/BTC has attracted new investors over the past several weeks, following the DeFi token phenomenon which utilizes the ERC-20 protocol for transactions. Ethereum 2.0, the long-awaited protocol update of Ether’s mother network is supposed to roll out its final testnet in early August.
Recent upside movements in BTC price had another domino effect on ETH as the second-largest cryptocurrency in the world advanced 7.8% in 24 hours, much higher than Bitcoin’s 1.7%.
Bitcoin’s rise to $9,500 seems to have helped the entire crypto market to trade a leg higher than in the previous week.
Technical analysis: ETH breaks resistance
Ethereum price has finally managed to break above $255 to hit a new 5-month high yesterday. The price action has also managed to close above $255, paving the way for a more substantial move higher.
Even more importantly for the buyers, the bullish flag chart pattern has been activated. This is a continuation chart pattern that aims to extend the uptrend higher. The measured target for the bull flag pattern comes at $380. Any pullback towards the $250 area is likely to be used as an opportunity by late buyers to jump on board and invest in Ethereum.
A large amount of ETH has been transferred to exchanges lately which may further increase the volatility. More importantly, ETH/USD broke above $255 to activate a bull flag chart pattern as the bulls eye a move to $380 in 2020.