Crypto Industry News:
The unidentified owner of a cryptocurrency wallet known only as nd4.eth decided to send a staggering 2,500 Ethereum to the so-called burn address on July 26, effectively removing $4.5 million worth of ether from trading (at the exchange rate at the time of this writing). The move sent the entire crypto-twitter community into motion in no small amount of consternation. Interestingly, anon still has cryptocurrencies in his wallet and continues to burn them.
The transfer was made to the address (0xdea...069), usually used to burn tokens, thus permanently removing them from circulation. In addition to the astronomical number of ethers, this person sent to the above-mentioned address also amounts and coins such as 1.5 ETH, 34.9 GMX and 600 GNS with a total value of approximately USD 7,000.
The mysterious move sparked a variety of speculations and reactions on X (Twitter). While some wonder why anyone would want to destroy such a large amount of money for seemingly no reason, others jokingly praised the perpetrator for adding to the narrative of "Ethereum's Ultrasound Money", a concept highlighting ETH's attributes as a deflationary currency that dwindles over time.
The motives behind this unprecedented move remain unclear, with theories ranging from a simple mistake to a deliberate act to start a new phase in anon's life (e.g. radical psychological disengagement from the world of cryptocurrencies, heartbreak, etc.)
Technical Market Outlook:
The ETH/USD pair has bounced from the key technical support located at the level of $1,816 and broken above the short-term trend line resistance seen around the level of $1,831. The new local high was made at the level of $1,874. The next intraday technical resistance is seen at the level of $1,888 and $1,903. The market conditions are extremely overbought on the H4 time frame chart, however, the momentum is still strong, so the short-term outlook remains bullish. Only a sustained breakout back below the trend line would change the outlook back to bearish.
Weekly Pivot Points:
WR3 - $1,869
WR2 - $1,850
WR1 - $1,839
Weekly Pivot - $1,830
WS1 - $1,820
WS2 - $1,810
WS3 - $1,791
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
