As a seasoned crypto investor with over a decade of experience in this dynamic market, I can’t help but feel a sense of deja vu when observing the current state of Ethereum. The ETH/BTC pair hitting its lowest since April 2021 is not only a stark reminder of past struggles but also a potential harbinger of future challenges.
The Ethereum (ETH) price is persistently underperforming, and the ETH/BTC pair has reached a significant low over the past few years, resulting in substantial losses for crypto traders who have placed their bets on this pair. Despite attempts to break through the $2,500 mark, Ethereum has yet to find a strong enough catalyst to initiate an upward trend. The 24-hour volatility remains at 0.4%, while its market cap stands at approximately $305.80 billion, with a 24-hour trading volume of $17.66 billion.
According to recent information from Spot on Chain, crypto trader James Fickel is experiencing a substantial loss exceeding 23,000 Ether, currently worth around $58 million, in his ETH/BTC long position. This is due to the fact that this trading pair has reached its lowest point since April 2021.
Over the last two days, the exchange rate for Ethereum (ETH) to Bitcoin (BTC) fell to 0.037. Meanwhile, James Fickel made another move by swapping approximately 4,418 ETH, worth about $11.13 million, into 166 Wrapped Bitcoins (WBTC). This is his second significant reduction in trading position within a span of only 37 days.
At present, Fickel owes a significant amount, which is about 1,116.6 WBTC or roughly $75.5 million, on Aave. Lately, he’s made a move to withdraw approximately 4,731 ETH from Lido, suggesting possible future exchanges may follow.
James Fickel, who goes by @jamesfickel on social media, is facing a significant loss of approximately 23,000 Ether (around $57.9 million) on his Ethereum to Bitcoin long position, as the value of this pair reaches its lowest since April 2021!
Significantly, following a drop in the rate to 0.037 within the past 2 days, James Fickel proceeded to exchange 4,418 ETH (valued at approximately $11.13M) for 166 WBTC, thereby lowering his holdings of…
— Spot On Chain (@spotonchain) October 25, 2024
Additionally, it’s suggested by cryptocurrency market analysts that the decline in ETH prices might not have fully concluded yet. In a recent examination, crypto expert Benjamin Cowen found similarities between the current Ethereum price fluctuations and those from late 2016. He noted that, in that year, Ethereum experienced substantial drops in April, August, and December of 2016.
By the end of 2024, there’s a reasonable possibility, as Cowen suggests, that Ethereum may experience another decline similar to its drops in April and August. This potential downturn might reach its lowest point in December.
- Ethereum Dominance Can Drop Further
As an analyst, I’ve noticed a significant decline in Ethereum’s market dominance over the past year, dropping from approximately 18.85% to 13.36%. This trend, if identified earlier, could have been beneficial. Unfortunately, catching it now might put investors at a potential disadvantage.
Although speculations of “ETH’s demise” might surface, Cowen suggests this drop was foreseen. If the negative trajectory continues, he predicts the next significant support level for ETH’s influence to be approximately 9-10%. He anticipates a potential recovery in 2025, but notes that further falls could happen in 2024.
- On the other hand, the inflows into spot Ethereum ETF have been disappointing since its launch in July. Unlike the Bitcoin ETFs, the Ether ETFs have failed to garner enough institutional interest with daily inflows turning almost nill.
An #Ethereum ICO participant just returned after 4 months of silence and deposited 3,000 $ETH ($7.63M) to #Kraken 23 minutes ago.
As an analyst, I’m observing that a significant entity, often referred to as a ‘whale’, currently maintains approximately 37,070 Ether (equivalent to around $94.3 million). Interestingly, this whale initially acquired a substantial amount of 254,908 Ether back in July 2015, when each Ether was worth just around $79K. Fast forward to today, and that initial investment is now valued at a staggering $648 million.
— Spot On Chain (@spotonchain) October 24, 2024
As a researcher, I’ve noticed that significant Ethereum ICO investors (whales) have been periodically unloading their Ether holdings, which seems to negatively impact market sentiment. Yesterday, an individual who participated in an Ethereum ICO transferred approximately $8 million worth of ETH to the cryptocurrency exchange Kraken, ending a dormant period of nearly four months.
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2024-10-25 15:46