As the crypto market continues to fluctuate, the recent withdrawal of a significant amount of Ethereum from Coinbase by twelve new crypto wallets has caught the attention of many investors. These wallets collectively withdrew 156,733 ETH, valued at approximately $574 million, at an average price of $3,664 per ETH. Despite this accumulation, the price of Ethereum has been struggling, prompting questions about a potential 7% drop in its price.
Data from the on-chain analysis platform Spot On Chain reveals that 11 out of the 12 wallets withdrew around 13,059 ETH each, while one wallet, identified as 0xdfa, withdrew a slightly higher amount of 13,084 ETH. Additionally, Ethereum’s availability on crypto exchanges has reached a seven-year low, as reported by on-chain data from Glassnode. This trend has led experienced crypto investor Lark Davis to predict a potential supply shock and a subsequent price increase for ETH, especially with the approval of spot Ethereum ETFs by the SEC.
The recent approval of spot Ethereum ETFs by the SEC has created a buzz within the crypto community and is seen as a significant advancement for the market. Industry experts like Bobby Banzai have predicted monthly inflows of $569 million into Ethereum ETFs based on the success of international ETFs and Chicago Mercantile Exchange futures data. Despite this positive development, the immediate impact on Ethereum’s price has been negative, with a 4% decline from Monday’s highs, currently trading at around $3,600.
Analysts caution a cautious short-term outlook for Ethereum, suggesting a potential 7% correction from its current market price. Since May 20, Ethereum has been consolidating within a range of $3,624 to $3,950. However, the recent challenges faced by ETH, trading at $3,551 on Tuesday, could indicate a possible breakdown from the established range. If this downward trend continues, Ethereum could find support around $3,302.
In addition to Ethereum, the wider crypto market is also experiencing a correction phase, with Bitcoin declining by about 3%, BNB by nearly 7%, and Solana by 3.5%. These fluctuations indicate a broader market trend that could impact the prices of various cryptocurrencies, including Ethereum. Despite the short-term challenges, the potential for a supply shock due to the decreasing availability of Ethereum on exchanges and the approval of Ethereum ETFs signal a positive long-term outlook for the digital asset. Investors are advised to monitor market developments closely and consider their investment strategies accordingly.
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