The price of Ethereum has shot up by 3.5% in the past hour, returning to $3,025 after diving to $2,829 in the early hours of the morning.
ETH’s current price means that it has risen by a very slight 0.4% in 24 hours, with the coin also down by 13% in a week and by 18% in the past month.
Such declines come as Golem transfers 36,000 ETH – worth approx. $108 million – to various exchanges, with the long-dormant Ethereum ICO project still sitting on a trove of 231,400 ETH.
This underlines the possibility of further big dumps to come, although ETH’s strong rebound from $2,800 suggests that it probably can’t fall much lower with traders returning to buy the dip.
Ethereum Selling Pressure? Golem Transfers $100M ETH to Exchanges: Price Prediction
What we see with Ethereum’s in the past 24 hours is a panicked selloff and then a very big recovery, with the coin’s indicators showing a marked improvement in momentum.
This is particularly evident with ETH’s relative strength index (purple), which has jumped from 20 in the early hours of this morning to nearly 70 as of writing.
Source: TradingViewAnd the alt’s 30-day average (orange) has also begun rising up from an excessively oversold position, with it now potentially on course to overtake the 200-day (blue) later this week.
We’ve also seen ETH’s trading volume spike a little today, rising from $10 billion yesterday to $16 billion today, as traders swoop in to take advantage of the coin’s sudden dip.
The main reason for this dip is that data revealed that the long-dormant project Golem – which raised 820,000 ETH in a 2016 presale – has transferred 36,000 ETH to Binance, Coinbase and other exchanges in the past 37 days.
Golem, a project that raised 820,000 ETH in ICO in 2016, has transferred 36,000 ETH to Binance, Coinbase, Bitfinex, etc. in the past 37 days, worth about $115 million. Currently, Golem still has 231,400 ETH, worth about $656 million. https://t.co/EjLTyeEAmz
— Wu Blockchain (@WuBlockchain) July 8, 2024
And while some people have used these transfers to suggest that the Golem team ‘know something’ (i.e. something ‘bad’ could happen), it’s just as likely that they’re preparing for a big bounce that could come with the launch of Ethereum ETFs.
It’s likely that the recently approved batch of ETFs will begin launching from this month, with analysts predicting good things for the Ethereum price.
As such, Golem’s transfers could simply be them preparing to profit from a rally, which could come later in the year, with rate cuts likely to boost things by the fall.
Ethereum could therefore return to $3,500 by Q4, and to $4,000 by the end of the year.
Diversification with High-Potential Meme Tokens
While ETH is more than likely to bounce back after a difficult start to the week, there are other coins traders should consider diversifying into, especially if they want to increase their exposure to potential gains.
One particularly promising source of returns comes from presale tokens, which can often rally dramatically as they list.
A great example of an interesting presale coin is Base Dawgz (DAWGZ), a multi-chain cryptocurrency that has already raised over $2.3 million in its token offering.
DAWGZ is one of the few multi-chain meme coins in the market right now, and accordingly, it will run on Ethereum, Base, Solana, Avalanche, and BNB Chain.
This will give it a much wider user and investor base, which in turn could help support its price over time.
Also helping it attract attention is its unique take on the ever-present Shiba Inu meme, with its mascot being an adrenaline-junkie dog who seems to encapsulate the thrill-seeking nature of much of the crypto market.
The coin now has over 4,000 followers for its X account, offering an early indication of how big its community could grow once it launches.
DAWGZ also has strong tokenomics, coming with a capped supply of 6.453 billion DAWGZ.
20% of this supply will go to the sale, with another 20% going to staking, earning holders a passive income.
Interested investors can join the coin’s sale by going to the official Base Dawgz website, where 1 DAWGZ currently costs $0.00581.
This is likely to prove a very low price, especially when DAWGZ has already been successful in raising a significant sum of money.
Buy DAWGZ Now
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