ethereum-accumulation-in-top-gear/” rel=”nofollow”>ethereum Whales have been very active in the market as on-chain data shows that these investors have been heavily accumulating the second-largest crypto token by market cap. This comes amid a price drop in eth Pricewith history bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>suggestion that the crypto token could suffer further price drops in the short term.
Whales accumulate more eth
Market Intelligence Platform Data bitcoin-time-bull-market-intotheblock-explains-why/” rel=”nofollow”>In the block shows that ethereum whales bought 297,670 eth ($1 billion) on July 24. The day before, these whales also bought nearly 400,000 eth. Other data shows an increase of over 28% in inflows to these whale directions in the last seven days.
Related reading
The decrease in outflows from these addresses further highlights the bullish sentiment of these investors towards ethereum despite its low performanceWithdrawals from these accounts have decreased by more than 14% in the last seven days and by more than 16% in the last 30 days.
He ethereum-exchange-netflows-highest-march-eth/” rel=”nofollow”>Net flow metric of large holdersIntoTheBlock’s article also highlights this wave of accumulation among ethereum whales, as net flows have increased by over 313%. This means that these investors are accumulating heavily instead of choosing to sell their eth holdings.
On-chain analytics platform Santiment noted that this significant increase in eth whale activity is due to the ethereum-spot-etfs-trading/#:~:text=Bloomberg%20analyst%20James%20Seyffart%20has,approval%20would%20come%20this%20week.” rel=”nofollow”>ethereum Spot ETFwhich began trading on July 23. The platform made this observation by revealing that since July 17, the amount of eth transfers has surpassed $100,000 in value, which is more than 64% higher than the amount of btc transfers and more than 126% higher than USDT transfers in the ethereum-network-now-cheapest-6-months-what-means/” rel=”nofollow”>ethereum Network.
ethereum spot ETFs had certainly presented a bullish outlook for ethereum even before their launch, as noted by cryptocurrency analysts such as RLinda foretold eth could rise to $4,000 thanks to these funds. It is therefore not surprising that ethereum whales continue to accumulate the crypto token in anticipation of an increase in eth prices.
ethereum Spot ETF Launch Could Be a Hurdle at First
ethereum Spot ETFs were ethereum-breakout/” rel=”nofollow”>projected be the catalyst that would trigger a ethereum-primed-for-huge-parabolic-move/” rel=”nofollow”>mass demonstration in the price of eth, and that is likely to happen at some point. However, history suggests that these funds may act as a headwind for ethereum at first, similar to the fate suffered by bitcoin immediately after the bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>Spot bitcoin ETFs Launched at the beginning of this year.
Related reading
bitcoin experienced significant price drops, largely thanks to outflows from bitcoin-etfs/” rel=”nofollow”>Grayscale bitcoin Trust (GBTC)A similar situation is already occurring with eth with Grayscale's ethereum Trust (ETHE). Interestingly, Grayscale's ETHE x.com/FarsideUK/status/1815889553653149811″ rel=”nofollow”>experienced a net outflow of $484.1 million on the first day of trading, much larger than the net outflows GBTC experienced on the first day, and GBTC is larger.
Considering this, ethereum could face significant selling pressure from Grayscale’s ETHE. x.com/FarsideUK/status/1816318386596393063″ rel=”nofollow”>Data A report from Farside Investors shows that the ethereum Spot ETF experienced a net outflow of $326.9 million on July 24 (Day 2), likely just the beginning of massive outflows that could eventually emerge from the fund.
Featured image created with Dall.E, chart from Tradingview.com