Analysts expect the altcoin’s price to drop due to Ethereum Foundation’s transfer of 20,000 ETH to Kraken. The Ethereum Foundation has previously sold Ethereum tokens to pay developers in 2018 and early 2021. Historically, a sale of ETH tokens by the Ethereum Foundation has triggered a sell-off. Traders consider that Vitalik Buterin times the sale ahead of a drop in ETH price, as seen in 2018.

Analysts expect a 20-30% drop in Ethereum price in light of the two events.

@Pentosh1, a cryptocurrency analyst, is of the opinion that the crypto market has been on the easy mode with less volatility than usual. He expects a 20-30% dip in Ethereum price.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES : (TECHNICALS)

Ethereum price is heading toward $6,400 as it continues to record higher highs and higher lows. ETH has formed a cup-and-handle pattern on the daily chart, suggesting a bullish 59% move toward the upside from the topside trend line of the pattern.

The optimistic target presented by the governing technical pattern is at $6,369, but Ethereum price would be confronted by multiple hurdles. The first obstacle for ETH is at the breakout line given by the Momentum Reversal Indicator (MRI) at $4,890, then at the 127.2% Fibonacci extension level at $5,731. Ethereum price will find immediate support at the November 10 low at $4,468, then at the 21-day Simple Moving Average (SMA) at $4,428. Further selling pressure could see ETH fall toward the May 12 high at $4,369 before slipping toward the 78.6% Fibonacci retracement level at $4,191.

Ethereum might adapt to bearish correction

Nov 12 2021