As a seasoned crypto investor with several years of experience under my belt, I have witnessed the intricacies and nuances of the cryptocurrency market firsthand. The recent launch of Ethereum spot ETFs has been an exciting development for the crypto community, and I’ve been closely monitoring the price action of Ethereum since then.
On Tuesday, Ethereum exchange-traded funds (ETFs) experienced a successful debut with over $107 million in investments. In contrast, Ethereum’s price has been experiencing selling pressure, currently down by 1.1%, hovering around the $3,450 mark.
Based on the data from Ethereum’s blockchain, it appears that whale activity remains strong. This observation might indicate that any potential downturn may be restricted moving forward.
Based on the latest data from IntoTheBlock’s on-chain analysis, large investors purchased approximately 112,900 ETH for a total value of around $390 million, even amidst yesterday’s drop in Ethereum ETF prices. This accumulation surpasses the $106 million worth of net inflows into Ethereum ETFs. This strong demand from major market players underscores the current robust interest in Ethereum.
In a similar vein, according to Santiment’s on-chain data analysis, the introduction of Ethereum spot ETFs has led to a considerable surge in whale transactions over the past week. Specifically, there has been a 64% increase in Ethereum transfers worth over $100,000 compared to Bitcoin transfers and a striking 126% rise compared to USDT (on Ethereum) transfers since July 17th.
The surge in Ethereum’s large-value transactions since the launch of nine new Ethereum-based spot ETFs on July 17th has significantly influenced whale behavior. Compared to Bitcoin and USDT (on Ethereum), the number of Ethereum transfers worth over $100,000 has increased by 64% and 126%, respectively.
— Santiment (@santimentfeed) July 23, 2024
Ethereum Price Action Going Ahead
According to reports, Ethereum may be taking a similar path to Bitcoin following the recent approval of spot Bitcoin ETFs. The price increase for Bitcoin began in February, with investors eventually overcoming outflows from Grayscale and inflows from institutions like BlackRock. As mentioned by well-known crypto analyst Michael van de Poppe.
If the financial markets mirror the price behavior of the Bitcoin ETF, it’s probable that we’ll experience a mild sell-off. This is likely due to the redemptions from the Grayscale trust, which may take around one to two weeks to materialize. After this period, Ethereum could potentially surge toward a new record high.
Based on the chart presented by Poppe, I believe Ethereum could experience a pullback and potentially drop back down towards $3,150 before continuing its bullish trend.
Photo: Poppe / TradingView
As an analyst, I find it intriguing to observe the prolonged duration of Ethereum Exchange-Traded Fund (ETF) inflows. This trend bolsters investor confidence in the Ethereum market.
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2024-07-24 18:15