Is the Recent Whale Activity Signaling Trouble for Ethereum?
- Ethereum faces selling pressure from whales amid election-related uncertainty.
- Institutional demand for Ethereum ETFs remains weak, impacting price recovery.
As the cryptocurrency market grapples with uncertainty surrounding the U.S. presidential election, Ethereum ( ETH ) has experienced significant downward pressure. Currently trading at approximately $2,443, ETH has seen a 0.73% decline in the past 24 hours and a steep 7% drop over the last week. Despite a slight recovery in total market cap, which is up 0.18%, and a notable 12.5% increase in trading volume over the same period, many altcoins have also faced dips.
Recent data reveals that Ethereum’s market cap stands at $297.4 billion, with a 24-hour trading volume of $12.34 billion. Analysts suggest that ongoing selling activity from large holders, or whales, could hinder ETH’s price recovery, with concerns mounting over the asset’s ability to surpass the $3,000 resistance level.
Notably, a prominent whale recently withdrew over 96,000 ETH from Coinbase, resurfacing after a 40-day absence to transfer 15,000 ETH to Kraken, potentially signaling further selling pressure. Additionally, a Cosmos Network wallet transferred 3,500 ETH to Coinbase , underscoring the trend of significant withdrawals impacting the market.
Will ETH Break Out Soon?
Despite this, market sentiment may shift positively if the election results lead to renewed bullish momentum. The futures market shows signs of rising optimism, with funding rates climbing 85% as traders speculate on a potential Trump victory, which could bode well for Ethereum ETFs.
However, weak institutional demand has limited ETH’s growth. Ethereum ETFs have struggled with inflows, especially compared to their Bitcoin counterparts, as institutions remain cautious. This lack of interest is exacerbated by significant outflows from the Grayscale Ethereum Trust since its inception.
With Ethereum’s price currently hovering near critical support levels, traders are closely watching for potential breakout opportunities, while the upcoming election may play a pivotal role in determining the market’s direction.
Highlighted News Of The Day
Metaplanet Enters CoinShares Global Equity Index Marking First
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
MARA's stock jumps after raising $1 billion via convertible notes to buy more bitcoin
MARA Holdings announced the successful closing of its $1 billion offering of 0% convertible senior notes due 2030.The bitcoin miner plans to allocate around $199 million of the proceeds to repurchase $212 million in principal of its existing convertible notes due 2026. The remaining funds will be used to acquire more bitcoin.
Gold loses luster as institutional demand fuels bitcoin price surge, analysts say
Bitcoin’s 46% surge over the past month, contrasted with gold’s 3% decline, highlights a shifting investor preference toward alternative store-of-value assets, analysts say.Derivatives traders are buying up bitcoin call options ahead of Trump’s inauguration, signaling strong bullish sentiment for the beginning of 2024.
SEC is 'engaging' Solana ETF applicants: report
SEC “engaging” on Solana ETF applications, sparking optimism for potential approval in 2025.VanEck, 21Shares, and Bitwise lead Solana ETF filings amid pro-crypto White House hopes.SOL token rises 4.6% to $247.91, bolstered by Solana’s strong DeFi ecosystem and demand.
Shiba Inu Developer Says SHIB Is No Longer a Memcoin