- The Ethereum price seeks support at the bottom trendline of the expanding channel pattern, amid increasing market volatility.
- SharpLink Gaming initiated a rare outbound transfer of 5,442 ETH worth roughly $17 million.
- The 20-day EMA slope acts as immediate resistance against ETH buyers, driving a high-momentum correction trend
Ethereum, the second-largest cryptocurrency by market capitalization, jumped over 3% during Tuesday’s U.S. market session. The buying followed a relief rally in the broader crypto market as Bitcoin held above the $90,000 mark. However, the Ethereum price remains under the seller’s dominance as institutional firms hint at a sell-off, while the futures market shows no interest from speculators. Will the top altcoin face a prolonged correction?
ETH Faces Headwinds as SharpLink’s Reserve Strategy Shifts to Outflows
Following a sharp sell-off last week, the Ethereum price gained temporary support from the $3,000 psychological floor. While the upswing aligns with today’s uptick in the broader crypto market, institutions hint at substantial selling of the ETH coin.
SharpLink Gaming, a Nasdaq-listed company that leads the way for Ethereum as a key corporate reserve asset, started an outbound blockchain movement today. Records indicate that the entity’s wallet sent 5,442 ETH, or approximately $17 million at current rates, to a custodial address managed by Galaxy Digital’s over-the-counter desk some four hours ago.
This action is in contrast to a pattern of inbound flows from SharpLink via Galaxy for ETH accumulation. The company maintains 861,000 ETH overall, purchased at an average of $3,609 per token, totaling $430 million in a marked paper shortfall in the face of ETH’s dip below purchase levels.
In addition, the open interest tied to Ethereum’s futures recorded a declining or sluggish trend after the October 10 sell-off. According to Coinglass data, the ETH’s OI has remained sideways around $38 billion over the past three weeks, signaling that the traders have significantly reduced their open position in the market.
The move likely emerged as a cautious approach to current market volatility and the declining trend in price.
Ethereum Price Eyes 10% As Buyers Defend $3,000 Support
Over the past week, the Ethereum price has shown a notable downswing from $3,658 to $3,091, accounting for a 15.51% drop. This fresh lower-high formation in the daily chart accentuates the intact sell-the-bounce sentiment among market participants, as the broader market correction continues.
Currently, the Ethereum price seeks support at the $3,000 psychological level, which coincides with the bottom trend line of a long-coming expanding channel pattern. Theoretically, these two diverging trendlines of the pattern indicate an increasing uncertainty among traders and pose a risk of prolonged decline if the price breaks below the bottom support.
The ETH price is currently positioned below the key exponential moving averages (20, 50, 100, and 200), accentuating the bearish momentum in the trend. However, the ADX (Average Directional Index) has spiked to 48%, suggesting the sellers could exhaust in the current downtrend.
Therefore, if the buyers managed to defend the bottom support, the ETH price could bounce around 10% before challenging the resistance trendline at the $3,400 mark.
On the contrary, a breakdown below the pattern’s support trendline would accelerate the selling pressure.
