Ethereum Price Analysis: ETH/USD may fall victim to a PlusToken saga

ETH/USD recovery stalled as the coin failed to stay above $130.00.
PlusToken team started selling ETH coins.

Fasten your seatbelts, ladies and gentlemen, bit Ethereun dump may be just around the corner.

According to the Wale Alert service (@whale_alert), 789,525 ETH tokens to the tune of about $100 million has been transferred from PlusToken to the unknown wallet.

If history any guide, this transaction may become a trigger for ETH collapse with the first aim at $120.00, followed by the recent low of $116.40, this is the lowest level since February 2019. Once it is cleared, the sell-off may continue towards a psychological $100.00. The broader market will also be affected, but ETH will feel most of the heat.

Earlier, the FXStreet reported that the founders PlusToken, one of the largest cryptocurrency scams, had started to cash out their loot via OTC desks through Huobi. They used mixers to cover-up their tracks, but the experts from Chainalysis managed to trace the transactions.

When the PlusToken team sold 25, 000 BTC, Bitcoin crashed below $7,000. However, the company also received investments in ETH, which means that the second largest coin may suffer the same fate when they start dumping ETH.

ETH/USD: technical picture

ETH/USD jumped to $134.00 during early Asian hours amid global recovery on the cryptocurrency market. However, the coin hails to hold the ground and retreated to $126.60 by the time of writing. ETH/USD has lost over 5% of its value since the beginning of Thursday.

On the intraday chart, ETH/USD has come close to SMA50 (Simple Moving Average) 1-hour ($126.50). This barrier may slow down the sell-off; however, a sustainable move below this support will push the price towards $125.00 (the lower line of 1-hour Bollinger Band) and $121.00.

On the upside, the initial resistance awaits us on approach to $130.00. An even stronger barrier is created by a combination of SMA100 1-hour and the upper line of 1-hour Bollinger Band at $131.50. Once it is cleared, the recovery may be extended towards the recent high of $134.00/

ETH/USD, the daily chart

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