Bankruptcy Speculations Surge as Genesis Unloads $126M Worth of Ethereum

Genesis firm just moved $126 million worth of Ethereum. According to sources, this is affiliated with potential bankruptcy liquidation.

Meanwhile, ETH has been struggling for a while now. Even with the recent launch of Ether ETFs, the coin is still down, creating negative sentiment in the market.

Genesis Trading Dumps Massive ETH

According to an X post, crypto lender Genesis Trading recently moved a large amount of Ethereum (ETH) worth about $126 million.

Genesis Trading transferred 27,500 ETH to the address starting with 0xcbCF at 9:43 UTC+8 today, worth about $87.09 milliom, and transferred 12,500 ETH to the address starting with 0x72FE, worth about $39.59 million, suspected of executing bankruptcy liquidation procedures....

- Wu Blockchain (@WuBlockchain) August 2, 2024

The company first sent 27,500 ETH to an address starting with 0xcbCF. Then, a substantial 12,500 ETH worth approximately $87 million was transferred to another wallet (ox72FE).

On July 31, the same trading firm moved 9644.4 ETH to an unknown wallet. This Ethereum move occurred as the cryptocurrency's price declined.

Notably, the crypto community expected the ETF launch to catalyze a surge in ETH's value.

But things went south for ETH. The ETF's performance seems to have followed a common market pattern (buy-the-rumour, sell-the-news"). This means a price rise before the event, then a fall after.

While the market is reeling from the disappointment, Genesis' recent ETH sales have raised concerns within the market. In the meantime, it's unclear how this will affect Ethereum in the long run.

Ethereum Price Movement Post-ETF Launch

As mentioned before, the launch of the Ether ETF had no positive impact on ETH's price. The coin has been dropping in price ever since. The daily chart below shows a worrying difference between the price movement and technical indicators.

Firstly, the RSI is dropping significantly, forming a bearish trendline. For Ethereum to recover strongly, it needs to break above this line. Ethereum must return to the $3,200 support level by the end of the day and break above the 50-day and 200-day SMA lines.

Based on its trading chart, a break above these lines could push ETH $3,500 and strengthen the bullish sentiment. If it fails, there's a higher risk it could drop below the crucial $3,000 mark. This level is essential for traders and could lead to further declines if breached.

Analysts Predict ETH to Surge Over $4,000 Mark

TradingView platformanalyst RLinda highlighted critical insights about the ETHUSDT chart. According to RLinda, bulls work hard to keep prices above a crucial support line.

This activity suggests strong buying interest at this level, which could help support a future price increase. The analyst added that ETH's price is going through a temporary dip. It's testing essential price levels (0.5 Fib and 200-day MA) to see if it will hold strong.

RLinda believes that the dip might look like an actual drop, but it could soon be a setup for a big jump to $4,000.

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