BlackRock just deposited nearly 30,000 of this crypto into Coinbase; Will it offload?

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BlackRock deposited 21,910 Ethereum (ETH), worth around $117.82 million, to Coinbase Prime on Monday, October 20, leaving the market speculating as to what the investment firm’s next move might be.

The transfer was done in ten transactions, nine of which were of about 3,000 ETH, or around $12.15 million, and one of more or less 2,109 ETH, worth approximately $8.45 million, according to data Finbold retrieved from Arkham Intelligence.

Institutional movements of this caliber are often seen as the groundwork for increased trading activity in the near future, or a rebalancing of the holder’s portfolios.

Accordingly, traders are now speculating whether the fund might increase its offloading soon. Last week, ETH ETFs had already seen a total of $312 million in outflows, with Blackrock’s iShares Ethereum Trust ETF (ETHA) accounting for $245 million.

While there is still no telling what the next move could be, the timing is made more interesting by the fact that BlackRock has just launched its first Bitcoin (BTC) exchange-traded product (ETP) for U.K. retail investors, with securities held through Coinbase. That is, a rebalancing in further favor of Bitcoin might be on the table.

Ethereum price goes up

In the aftermath of the transfer, Ethereum is up 1.58% on the daily chart, trading at $4,034 at the time of writing. Considering the asset was trading below $3,700 on Friday, the rebound over the weekend has been substantial.

Moving along with the broader cryptocurrency market, Ethereum’s total market value is also up more than 4%, now being at over $485 billion. The rally is largely driven by renewed optimism around a potential Federal Reserve rate cut, but a key technical rebound has also contributed.

Namely, the crypto has rebounded from last week’s $3,500 support zone and successfully reclaimed the psychologically important $4,000 mark. At the same time, the long-term, 200-day exponential moving average (EMA) sits at $3,191 and continues to act as dynamic support, suggesting ETH’s long-term uptrend remains intact.

The relative strength index (RSI) reading of 44.58 also leaves room for some additional upside, although resistance at the $4,070 level, the 50-day small moving average (SMA), remains a short-term problem.

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