Three Arrows Capital buys 18,575 ETH as Ethereum holds above $3k support

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Key Takeaways:

• Crypto hedge fund Three Arrows Capital bought 18,575 ETH in the last three days.
• Ethereum prices currently hold above $3,000 support.

NEW DELHI (CoinChapter.com) — Crypto hedge fund Three Arrows Capital accumulated 18,575 ETH over the last three days, worth nearly $56.67 million, as per data from Etherscan.

Over the same period, Ethereum prices broke above the coveted $3,000 price level after moving below it during Jan 21’s market crash. The firm bought 14,575 ETH on Feb 4 (09:37 UTC) before buying 2,000 ETH each on Feb 5 and Feb 7.

Large transactions often swing market sentiment. As such, it is likely Three Arrows Capital’s buying spree was a factor behind Ethereum’s recent move above $3,000. However, following Chinese crypto reporter Wu Blockchain’s status, several crypto netizens’ responses were skeptical.

Also Read: Ethereum recovers some lost ground, but ETH price struggles to move above $2.7k.

While several Twitter users noted how the firm waited to buy the dips, others wondered when the firm would dump the token for profits. Interestingly, Three Arrows Capital founder Su Zhu disavowed Ethereum in late Nov 21, claiming newcomers cannot afford the platform due to its high transaction fees.

Later on, the founder apologized, stating that great teams are working on scaling Ethereum on Layer 2 networks. Moreover, Mr. Zhu’s firm bought 91,477 ETH after a couple of weeks of the founder’s tweets. The Ether tokens were worth roughly $400 million at the time.

Ethereum Holding Strong Above $3,000

Ethereum prices rose steadily following the Three Arrows Capital buying spree. However, prices started moving downwards on Feb 8. Prices rose to $3,234 before falling to $3,052. The long wicks on the day’s candle indicate bulls are buying as soon as prices move near the $3,000 price level.

After reaching the day’s high, ETH prices started moving downwards around noon (UTC). Later in the day, prices started moving upwards.

ETH currently has resistance from its 50-day moving average near the $3,226 price level. Once the Ethereum token flips its 50-day MA into support, ETH prices could target $3,330. Ethereum would likely target resistance from its 200-day MA near $3,500 before prices pull back.

Conversely, if Ethereum falls victim to profit booking inspired selloff, ETH has support near $3,000. Moreover, sustained bearish price action could reduce prices to the $2,870 price level. Furthermore, ETH flipped its two-week resistance near $2,760 into support.

Also Read: Ethereum correlation with the U.S. equities hit record high as ETH holds $2.5K-support.

Meanwhile, the relative strength index for Ethereum is currently neutral, clocking 57.52 on the daily charts. The RSI trendline continues to move upwards but is still far from the overbought levels, giving ETH room for further uptrend.

At the time of writing, ETH was trading at $3,117, down 0.76% on the day.

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