Ethereum, the second-largest cryptocurrency by market capitalization, has seen a significant withdrawal of 156,733 ETH from Coinbase wallets. This move, totaling approximately $574 million, has raised concerns about the future price direction of Ethereum, especially as the price of ETH has been struggling to rise. Despite this accumulation, the price of Ethereum has seen a slight decline, with the current value hovering around $3,600 per ETH.
Data from Spot On Chain reveals that 11 out of the 12 wallets that withdrew Ethereum from Coinbase collectively moved 13,059 ETH, while one wallet with the address 0xdfa withdrew a slightly larger amount of 13,084 ETH. Additionally, the availability of Ethereum on exchanges has hit a seven-year low, indicating a potential supply shock that could drive the price of ETH higher. Lark Davis, a well-known crypto investor, has pointed out the positive impact that Ethereum ETFs could have on the market, leading to a potential price surge for ETH.
The recent approval of spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) has sparked optimism in the crypto community. This development could pave the way for significant investments in Ethereum, similar to the success seen with Bitcoin ETFs. Bobby Banzai, a prominent crypto researcher, has predicted monthly inflows of $569 million into Ethereum ETFs based on the performance of international ETFs and Chicago Mercantile Exchange futures data. Despite these positive forecasts, the immediate impact on Ethereum’s price has been less than favorable, with a 4% decline from Monday’s highs.
While the market remains optimistic about the future of Ethereum, there are concerns about a potential short-term correction. Spot On Chain’s analysis suggests a possible 7% correction from Ethereum’s current market price, which has been consolidating between $3,624 and $3,950 since May 20. The price of ETH faces challenges as it struggles to maintain its current level, trading at around $3,600. If the downward trend persists, Ethereum could find support around $3,302.
In addition to Ethereum, the wider crypto market is also experiencing a correction phase, with Bitcoin, BNB, and Solana seeing declines in the past 24 hours. It is essential to note that this price analysis is for informational purposes only and should not be considered financial advice. Market conditions are subject to change, and it is always recommended to conduct thorough research and consult with a financial professional before making any investment decisions. BeInCrypto is committed to providing accurate and unbiased reporting on cryptocurrency market trends.
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