As a seasoned crypto investor with a decade of experience under my belt, I must admit that the current market trends are making me feel like a weathered sailor navigating through choppy waters. The historical data suggesting a bearish September and the gradual rise in Bitcoin’s dominance have me treading cautiously.
As August nears its conclusion, there’s growing unease among crypto traders about a potentially bumpy September, as historical trends indicate it tends to be a bearish month, particularly after the Bitcoin (BTC) halving. The altcoin sector, spearheaded by Ethereum (ETH), is forecasted to continue losing ground relative to Bitcoin in the short term prior to the much-anticipated altseason. Moreover, Bitcoin’s influence has been gradually increasing, even though it recently hit a significant resistance level of approximately 57 percent. Furthermore, the ETH/BTC ratio has been stuck in a downward trend since the last quarter of 2021 up until now.
Ethereum Whales Gets Fearful
In contrast to the rise associated with the Bitcoin market following recent ETF approvals in the U.S., the Ethereum market has experienced a decline instead. As per current market statistics, the value of Ether dropped by approximately 28% over the last three months and was trading around $2,680 during the mid-London session on Tuesday.
As we currently stand, recent market data indicates that U.S. spot Ether exchange-traded funds (ETFs) collectively experienced a substantial outflow of approximately $477 million, with only one week showing net inflows. Notably, the large cash withdrawals from Grayscale’s ETHE have dwarfed the incoming capital from other providers of spot Ether ETFs.
On Monday, August 26th, U.S. Ethereum-focused Exchange Traded Funds (ETFs) experienced an outflow of approximately $13.2 million in cash, with a total management of around $7.4 billion in assets. Conversely, Bitcoin-related ETFs saw a net inflow of over $202 million on the same day, and have had more weeks of positive growth compared to outflows.
It appears that some institutions have been offloading ETH today! Amber Group transferred 6,443 ETH ($17.62M) to Binance and Kraken 6 hours ago. Similarly, Cumberland deposited 6,439 ETH ($17.66M) into Binance 3 hours ago.
Address:0xEc9fC235A8064698A2533c2D489DEFF4fBA8226B…
— Lookonchain (@lookonchain) August 26, 2024
Over the last day, it appears that some large investors, such as Cumberland and Amber Group, have increased their Ethereum selling activities, according to data recorded on the blockchain.
As a crypto investor, I recently noticed that a successful whale trader transferred approximately 8,800 ETH, equivalent to around $24 million, into Binance today. Currently, this whale holds over 10,600 Ether, valued at more than $28 million. At the moment, it appears they are estimated to have incurred a loss of approximately $15 million.
Midterm Expectations
After the recent drop in cryptocurrency values, Ethereum’s price relative to the U.S. dollar has closed beneath its 50-week Moving Average (MA) for the initial time since last year in August. This well-known altcoin, valued at approximately $324 billion and averaging about $11.4 billion in daily trading volume, seems poised for a possible continued downward trend in the upcoming weeks.
Over the last half year, the value of Ether has created a double peak pattern on its weekly charts, with a bearish trend emerging on the Relative Strength Index (RSI). This technical formation, combined with ETH frequently closing below $2,900 lately, suggests that Ether’s price may continue to exhibit a downward trend in the short term.
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2024-08-27 12:31