Dormant Ethereum (ETH) Address Returns to Life: Time to Sell?

On February 4, Whale Alert notified the crypto community that a dormant address holding 100 Ethereum (ETH) coins had been reactivated. According to the post, the said address’ last activity was eight and a half years ago.

At press time value, the value of the cryptocurrency was worth $230,159. Movements like this spark speculation in the market. Sometimes, the activation leads to a sell-off. In other cases, the participant merely shifts the coins to a new address.

Coin Edition monitored that wallet and observed that 20 ETH out of the 100 had been sent to a new address. However, it remains uncertain if the transaction would end up in a sale or if it was just an address or security amendment.

ETH Keeps Consolidating

At press time, ETH’s price was $2,291, confirming how the altcoin has been consolidating in a tight range for the last 30 days. Based on the 4-hour chart, the 9 EMA (blue) was at $2,298 while the 20 EMA (yellow) was at $2,301.

This togetherness in the EMAs was proof that ETH’s next movement might not remain an indecisive one. However, traders might need to watch out for the crossovers. If the 20 EMA crosses above the 9 EMA, then ETH’s trend could be bearish.

ETH/USD 4-Hour Chart (Source: TradingView)

However, a downward crossover of the 20 EMA against the 9 EMA would imply a potential bullish move for ETH. Should this be the case, ETH might jump to $2,390. However, a bearish scenario could see ETH drop to $2,245.

It’s a Potential Buy Signal

On the daily timeframe, the Aroon indicator showed that the dominance of bears had slowed. Previously, the Aroon Down (blue) was 94.48%. But at press time, the indicator was down to 14.29%.

However, this decline was not an indication that bulls have capitalized on the drawdown. At press time, the Aroon Up (orange) was 0%, indicating that buyers were currently onlookers. Another indicator considered was the Supertrend which could help in identifying buy and sell signals.

From the daily chart, the Supertrend showed that a sell signal had appeared at $2,524. Therefore, if ETH moves that high, it could be time to book profits. On the other hand, a buy signal popped up at $2,290.

ETH/USD Daily Chart (Source: TradingView)

In conclusion, ETH’s price action currently offers a buying opportunity rather than a sell one. Regardless of the signal, traders might need to apply caution. If another wave of selling pressure hits the market, ETH might decline below $2,290. But if it does not, a climb into the $2,500 region could be next.