As a seasoned analyst with over two decades of experience in traditional and digital markets, I’ve learned to read between the lines of market movements and whale activities. The recent sell-off of Ethereum by BlockTower Capital, coupled with the selling spree of an old Ethereum whale, does indeed raise concerns about the sustainability of ETH‘s price gains. However, it is essential to consider the broader context.
Notable cryptocurrency investment firm BlockTower Capital has recently sold off approximately $25 million worth of Ethereum (ETH). This transaction took place on August 13 and occurred during a broader market recovery for ETH, as it challenges the $3,000 resistance point at present.
The massive sell-off by a company renowned for investing strategically in digital assets has sparked worries over the longevity of Ethereum’s recent price increases.
BlockTower Capital disposed of approximately 9,232 Ether, worth around $24.8 million, spread across various trading platforms. Specifically, 3,537.81 ETH were sold through FalconX, 2,954.28 ETH were traded using B2C2 Group, 2,090.24 ETH went to Wintermute Trading, and 639.28 ETH were offloaded on Cumberland.
Significantly, it’s worth noting that BlockTower Capital is currently undergoing liquidation, which coincides with a noticeable decrease in institutional interest in cryptocurrencies. This decline has been evident in the wider market, where there’s been a distinct drop in activity over the past few weeks.
Whale Activity
The significant selling actions of one of Ethereum’s long-time large investors are adding to the current strain on Ethereum prices. Over the past few weeks, this investor has sold 5,000 ETH, equivalent to approximately $13.2 million, and in just the last month, they have unloaded a total of 48,500 ETH, valued at around $154 million. This massive selling activity is helping to drive Ethereum’s price lower.
In spite of these bearish trends, there are indications of increased purchasing enthusiasm from specific groups. For instance, a major investor who had been forced to sell during the market collapse on August 5, losing approximately 2,890 wstETH ($8.06 million), has returned to the market with a positive outlook.
Starting from August 11, this investor has taken out loans totaling $12 million (in DAI, USDT, and USDC) to buy approximately 4,459 ETH, worth around $11.8 million, at an average price of about $2,646 each.
Ether Price Movement
At present, Ethereum is approximately priced at $2,642. It encountered resistance when trying to reach $2,700. Despite this, it has seen a small 2% rise in the last day and a more substantial 7.5% growth over the past week.
The surge in Ethereum’s growth is partly driven by an uptick in investments into Ethereum exchange-traded funds (ETFs). Data from SoSo Value shows that US-listed spot Ether ETFs received a net inflow of approximately $4.93 million on Monday. Leading the charge was Fidelity’s FETH with $3.98 million in investments, followed by Franklin Templeton’s EZET which gained $1 million, and Bitwise’s ETHW with a positive flow of $2.86 million. It is worth mentioning that these inflows on Monday have ended a three-day trend of outflows from these funds.
If Ethereum manages to surpass the current resistance at $2,700, it might initiate a bullish trend. This potential breach could propel the price towards the $4,000 region. Such a rise would represent a substantial increase, though it would still fall short of Ethereum’s record high of $4,891, which was reached in 2021.
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2024-08-13 14:57