Fidelity Deposits 64997 ETH on Coinbase: Sell-Offs Begin?

1-day Ethereum Trading chart | Source: tradingview

The pattern has two high points just above the $4,000 mark, then a low point and a possibility of a breakdown through the neckline at $3,200. This technical formation represents a reversal of an up trend that indicates a bearish breakout is possible.

In case the price drops below the $3,200 support level the Double Top pattern estimates the target at $2,750.

Present price trend indicates a rising bearish pressure, the RSI of Ethereum stands at 39.48 which signifies that seller pressure is increasing.This is below the middle of the neutral range of 50, but traders may look for oversold conditions below 30 to take some short term profit.

Implications of the Move by Fidelity

Increased flows of ether to wallets linked to institutions like Fidelity could be an indication of increased trading interest or build up before large purchases or sales. These moves, although pointing to the growth in supply, also show the rising participation of institutions in the cryptocurrency market.

This is why traders need to pay attention to on-chain information and the technicals. Whether the market will view these deposits as a signal for selling or as a part of larger market trends will define the price of Ethereum in the next few days.

As Ethereum approaches critical support levels, the market is still quite sensitive. Traders should keep an eye on Fidelitys further actions and other institutional investors to determine the further trend of the market.