Ethereum (ETH) Price Drops Further amid Heightened Whales’ On-chain Activities

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As an analyst with over a decade of experience in the crypto market, I’ve seen my fair share of bearish and bullish trends. The current state of Ethereum (ETH), the second-largest cryptocurrency by market cap, is no exception. With a 8% drop over the past two weeks and a continued bearish outlook, it’s clear that we’re in for a challenging time.

Over the last day, the cryptocurrency market, primarily driven by Bitcoin (BTC) and Ethereum (ETH), maintained a bearish trend. This downturn caused the total value of all cryptocurrencies to decrease to approximately $2.39 trillion, resulting in over $256 million worth of positions being liquidated within the same period, mainly affecting long-term traders.

Based on recent cryptocurrency market statistics, it’s been observed that the value of Ethereum decreased by approximately 8% within a fortnight, and it was being traded at roughly $3,141 during the London trading hours on Friday afternoon.

As a result, the value of Ethereum has dropped below significant support points, such as its daily 50 and 200 Moving Averages (MAs). Looking at the technical aspects, Ethereum’s price has been confined to a downward trend for approximately five months. Remarkably, it has managed to maintain a supportive range between $2,814 and $2,927 during this period.

Ethereum Network Registers Heightened Whales Activities

Institutional investors in the altcoin sector have been drawn to the Ethereum network, as several U.S.-approved spot Ether Exchange Traded Funds (ETFs) have become available. These approved ETFs provide institutional investors with a way to diversify their crypto investments.

Over the past three days, there has been a continuous inflow of capital into U.S.-listed Ethereum ETFs, amounting to approximately $26.7 million as of yesterday. Conversely, Grayscale’s Ethereum trust experienced an outflow of around $77.95 million on Thursday, leaving it with a total asset value of roughly $6.27 billion.

As a researcher, I’ve been tracking the performance of two U.S.-based Ether Exchange Traded Funds (ETFs): BlackRock’s ETHA and Filedilty’s FETH. Notably, these ETFs have recorded net cash inflows amounting to approximately $89.66 million for ETHA and $11.70 million for FETH respectively. However, the overall picture shows a net cash outflow of around $456.43 million for these spot Ether ETFs combined, with total assets under management reaching about $8.72 billion.

Over the last two days, an account linked to Elwood Technologies, identified as a “whale” address, has transferred approximately 19,500 Ether (worth around $63.66 million) into Binance cryptocurrency exchange.

Who dumped $ETH causing the price to drop?
Over the last two days, we’ve observed three wallets linked to #Elwood transferring approximately 19,500 ETH (equivalent to around 63.66 million dollars) into #Binance!
Coincidentally, these wallets deposited $ETH to #Binance every time before the price crashed!
— Lookonchain (@lookonchain) August 1, 2024

Closer Look at Web3 Activities

In the thriving web3 landscape, Ethereum continues to reign supreme, holding a staggering $56 billion in total ‘locked’ value and boasting a massive market capitalization of over $78 billion for stablecoins. As Ethereum marked its ninth year, co-creator and chief developer Vitalik Buterin outlined several key improvements to maintain the network’s edge against competitors.

Additionally, decentralized networks such as Solana (SOL) and Toncoin (TON) are advancing rapidly within the web3 sector.

Midterm ETH Price Expectations

Although institutional investors are increasingly seeking Ethereum, its price has been holding steady instead of surging, implying a potential sell-off scenario. However, experts predict that Ethereum’s price will shatter its record high by the end of the year, driven by the forthcoming interest rate reduction and the upcoming U.S. general election.

As an analyst, I foresee potential technical difficulties for Ethereum’s price. If the support level at approximately $2,927 does not withstand the upcoming market fluctuations within the next few weeks, we might witness a drop in Ethereum’s price, potentially down to around $2,725.

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2024-08-02 14:02