The crypto market has been shaken to the core once again as major cryptocurrencies plummet to crucial support levels. Ethereum, the prized altcoin of the crypto industry, has recently gained nearly 7% in the daily time frame. This is the coin’s ongoing efforts to strengthen its current support located at $1,500 as it lost the same value last week in the face of negative investor sentiment.
Recent external events have shaken investor confidence, such as macroeconomic events that are currently spreading fear, uncertainty, and doubt in the market. This February 16 is the release of several macroeconomic indicators that are expected to impact the broader financial market.
Vitalik Buterin Sells Some ETH
In another development, Ethereum cofounder Vitalik Buterin recently sold 210 ETH in the market. This was first noticed by PeckShieldAlert, a Twitter account dedicated to tracking large transactions. The recent movement of Buterin’s ETH has been the subject of discourse online with some questioning where the funds will be used.
During the date of the Tweet, February 15th, the amount sold is worth $324,400 of USDC. The stablecoins are then deposited to Kraken. This transaction, however, did not have a strong effect in the market. In the meantime, investors should watch out for these macro indicators.
Macroeconomic FUD
Meanwhile, economists are pessimistic about the short to medium term prospect of the US economy. Recent macroeconomic data released on February 14th certainly had some effect on the coin’s trajectory.
However, this positive sentiment is negated by events that happened recently. Matt Weller, Global Head of Research at FOREX.com, recently shared his thoughts about the state of the global economy. He said that events from 2022 and the fact that the International Monetary Fund is hawkish about the future of the world economy still sets the mood for investors.
The IMF recently warned about how shock-prone the global economy really is. With the fear of a global recession still lingering around, Ethereum – and the crypto market in general – might experience volatility because of this.
Crypto total market cap at $1 trillion on the daily chart | Chart: TradingView.com
Ethereum At $1.5K Support
At the time of writing, the coin is trading at $1,651 with support at $1.500. This recent rebound of Ethereum might be a sign that the bulls have successfully strengthened the coin’s crucial support at such an important time.
This recent price action is also the result of improving macros which will inevitably pull the price of Ethereum upwards. However, the massive price jump should be taken with a grain of salt as the next couple of days are expected to be filled with volatility.
-Featured image from Oxygen Mag