Ethereum (ETH) Price Suffers Low Bullish Momentum amid Shrinking Demand for Whale Investors

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As a seasoned crypto investor with a decade of experience under my belt, I find myself both intrigued and cautious regarding Ethereum’s current situation. The ongoing market rebound has been a rollercoaster ride, with Bitcoin leading the charge while Ether seems to be lagging behind. Despite consistently closing above the 50-day Moving Average, Ether’s price is yet to break free from the shackles of its August losses.

During the recent surge in the cryptocurrency market, driven by positive forecasts for October, Ethereum (ETH $2 667) – the largest altcoin with a market capitalization of over $321 billion – has been slow to gain momentum compared to other coins. Contrastingly, Bitcoin (BTC $65 833), the dominant cryptocurrency, experienced more losses during the August crypto selloff but has shown a more substantial rebound in the past three weeks.

Based on recent market findings, Ethereum’s price has surged approximately 11% over the last fortnight, with Bitcoin recording a rise of nearly 13% during the same timeframe. Although Ethereum has consistently closed above its 50-day Moving Average (MA), it is not yet clear sailing and could potentially fall back to a support level around $2,250 in the short term before bouncing back towards its record high.

If Ethereum’s price doesn’t surge beyond its July high of approximately $3,566 within the next few weeks, the broader downtrend that started in March could potentially drive the cryptocurrency down to levels under $2,000.

Nonetheless, the October crypto bullish narrative, coupled with the shifting global economic outlook amid the upcoming US 2024 election, could prevent further bleeding. As a result, ETH price could rally toward its all-time high in the near term.

Ethereum Suffers Low Demand from Whale Investors

Compared to Bitcoin, demand for Ethereum has been relatively modest following the green light given to U.S. Ether ETFs. Recent market statistics show that these ETFs have seen a total outflow of approximately $581 million since their landmark approval earlier in 2021.

On Thursday, the U.S. Ether Exchange-Traded Fund (ETF) experienced an outflow of approximately $0.6 million, primarily due to Grayscale’s ETHE. Currently, these U.S. Ether ETFs collectively manage assets worth $7.2 billion. Notably, BlackRock’s ETHA and Fidelity’s FETH have been the main contributors to net cash inflows in recent times.

Over the last three weeks, US Bitcoin ETFs have seen a surge of approximately $1.4 billion in net cash inflows. This influx has caused the quantity of Bitcoin on centralized exchanges to decrease by over 90,000 in the past month, leaving around 2.3 million Bitcoins currently available.

These two major players further moved 12,100 $ETH ($31.7M) to exchanges in the past 24 hours!
In total, they have unloaded 20,610 $ETH ($53.6M) over the last 3 days, including:
👉 Ethereum ICO whale “0xb8c” sent 8,510 $ETH ($22.15M) to #Kraken after 3 months of inactivity,…
— Spot On Chain (@spotonchain) September 26, 2024

Over the last day, I’ve noticed from my analysis that two significant crypto whales have transferred approximately 12,000 ETH, equivalent to over $31 million, into various exchanges. This influx has boosted the total Ether supply on these platforms by around 157,000 in the past month, which, in turn, seems to be dampening the overall positive sentiment towards Ethereum.

Bigger Picture

Despite Ethereum’s dominance in the web3 ecosystem, boasting a total value locked of approximately $49 billion and a stablecoins supply exceeding $85 billion, it faces stiff competition from other layer one chains such as Solana, Tron, Toncoin, and Binance Smart Chain (BSC), among others. These contenders attract attention due to their lower transaction fees and high throughput capabilities.

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2024-09-27 17:09