Ethereum‘s (ETH) price has maintained a flat movement as the market still awaits a trigger. However, Ethereum is not alone in this sideways trend. Several major index funds also observed similar sideways trading, highlighting ETH’s positive correlation with the traditional financial market. So, what does this situation imply?
Ethereum Shows Correlation with Traditional Markets
Despite the recent launch of spot Bitcoin (BTC) ETFs in the USA, it is noted that Ethereum’s correlation with the traditional market has exceeded that of BTC. Compared to BTC, Ethereum has shown a high correlation with indices such as the Nasdaq 100, S&P 500, and Dow Jones Industrial Average. This situation can be clearly seen in the recent price movements where Ethereum traded sideways along with these indices.
As ETH’s price stagnates, major players are making moves behind the scenes. According to Spot On Chain, an individual who participated in the initial coin offering (ICO) moved to sell 2,000 ETH for 6 million USDC at $2,997. This whale, who bought 33,213 ETH at $0.31 during Ethereum’s Genesis ICO, has since sold 5,110 ETH and still holds about 29,700 ETH in three wallets.
According to Lookonchain, on Wednesday, another whale spent 10 million USDT to buy 3,279 ETH at $3,050, and on Thursday, withdrew 21,474 ETH worth $64.7 million from Binance. Since April 8, this whale has purchased a total of 107,931 ETH from decentralized exchanges and Binance.
ETH’s Sideways Movement Could Last for Weeks
Ethereum’s bears tried to pull the ETH price below the critical level of $2,850 overnight. However, as of writing, ETH quickly surpassed the $3,000 support level and the price exceeded $3,100.
Cryptocurrency world’s altcoin leader ETH has continued its movement, trading between $2,900 and $3,300 since the market crash on April 12.
The increasing allure of Ethereum restaking and the anticipation of Bitcoin halving could be key factors keeping Ethereum’s price within this range. Currently, we observe Ethereum not breaking out of the resistance level of $3,300 and support level of $2,852.
The sideways movement could last for weeks until the Securities and Exchange Commission’s decision on the spot Ethereum ETF. However, if the Bitcoin halving triggers an unexpected rally, this scenario could change.
