Ethereum Foundation Wallet Offloads Over 7,000 Ether Units

Ethereum (ETH), the second-largest cryptocurrency by market capitalisation, is currently holding above crucial support levels, triggering speculation about a potential push towards $4,800-$5,000.

The digital asset's current position is extended, as indicated by the position of the 100-day and 200-day moving averages, which stand much lower at $3,012 and $2,564 respectively. This extended move, however, confirms that bulls maintain control over the market.

The next few weeks could determine the market's direction, with some analysts predicting a healthy correction, while others anticipate another rally into uncharted territories.

A focal point for many analysts has been wallet 0xF39d, associated with the Ethereum Foundation. In June 2022, during the bear market, this wallet accumulated 33,678 ETH (around $40.2 million) at an average price of $1,193. However, recent activity shows that the wallet has sold 7,294 ETH over the last three days, worth approximately $33.25 million. This selling activity underscores the role of "smart money" in shaping Ethereum's market cycles.

The daily chart of Ethereum shows a consolidation around $4,420 after a sharp rise in July and early August. This consolidation follows a pullback that appears to be a healthy correction, allowing the market to "digest" gains and prepare for the next move.

On the downside, a break below $4,200 could pave the way towards the support area of $3,800-$3,900, aligning with the ascending moving averages. The 50-day moving average offers dynamic support around $3,480.

Strong institutional demand and record inflows into Ethereum ETFs are factors supporting the positive trend. The Ethereum Foundation's wallet, which accumulated 33,678 ETH in June 2022 at an average price of $1,193 each, sold its ETH at an average price of $4,558.

The market is currently experiencing intense debate about Ethereum's future movements. The complex market structure, with addresses like 0xF39d revealing how experienced players are navigating the consolidation, adds to the intrigue.

Ethereum has reached its highest levels since November 2021, indicating a strong recovery from the bear market. The market structure and the recent activity of key players like the Ethereum Foundation suggest that the cryptocurrency could be poised for further growth, but only time will tell.