Ethereum Is Flat, and Whales Selling: More Pain to Follow?

Share This Post

Ethereum is struggling for momentum and remains under immense selling pressure. As of writing, the second most valuable coin is inside a narrow range, trending within the $2,100 on the lower end and $2,800 on the upper end.

The local resistance level could mark the start of an impressive leg up, relieving the coin of the current sell grip from early August.

Ethereum Whales Selling

Although supporters are upbeat, expecting the coin to trend higher, breaking above local liquidation lines in a buy trend continuation formation, there are concerns. Looking at Ethereum price action, the coin could post even more losses.

One analyst, citing on-chain developments, notes that Ethereum whales, or addresses holding at least 10,000 ETH, have been actively selling over the past month. Overall, their decision to sell could suggest that these entities, who are often closely monitored, are not confident about what lies ahead.

Ethereum whales offloading | Source: @ali_charts via X

 

Therefore, others could follow suit by unloading their holdings, leading to a supply glut. Considering market forces, an uptick in supply could negatively impact prices, delaying the climb above the immediate roadblocks.

Massive Outflows From Spot ETH ETFs

Beyond this, analysts are also deflated by the current trends of spot Ethereum ETFs. In May, prices shot higher when the United SEC unexpectedly fast-tracked the approval of 19b-4 forms for applicants. The approval of the S-1 registration forms was also received positively, lifting prices above the $3,000 mark.

Ethereum price trending downward on the daily chart | Source: ETHUSDT on Binance, TradingView

 

However, days after the product began trading, there were more outflows, especially from Grayscale’s ETHE. Concurrently, demand has been lower than expected. Since its inception, over $247 million worth of ETH has been redeemed from ETHE. Subsequently, prices have been struggling and moving further away from March 2024 highs.

According to Farside data, all spot Ethereum ETF issuers posted outflows of around $6.5 million on August 20. This is mostly thanks to the millions of dollars of redemption through ETHE. This has been a consistent trend since August 15.

Spot Ethereum ETF flows | Source: Farside

It suggests that though the smart contracts platform offers value, ETH’s immediate to medium-term outlook is bearish. Accordingly, investors are choosing to move their capital elsewhere.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Dogecoin Could Target $0.20 Soon, Analyst Predicts – Is DOGE Primed For A Rally?

Dogecoin is trading above $012 after a 20% pump over the past two days, reigniting investor enthusiasm The meme coin had been struggling to break past the $011 mark, leaving investors frustrated as

Binance Founder CZ Released From US Custody After Serving 4-Month Sentence

Binance founder and former CEO Changpeng Zhao (CZ) has been released from US custody after serving a four-month sentence for his role in compliance failures at Binance His sentence followed a plea

Ethereum Fees On The Rise Again, What’s Driving This?

On-chain data shows that Ethereum transaction fees have been rising again recently Here’s what could be behind this trend Ethereum Average Fees Has Registered A Notable Uptick Recently In a new

Crypto Veteran Says Decentralized AI Reduces Bias and Manipulation Risks

Albert Castellana, co-founder and CEO of Yeagerai, believes artificial intelligence (AI) can propel blockchain-based applications beyond simple, static contracts AI integration unlocks “much

Lummis Predicts Positive Outlook For Crypto If Senate Shifts To Republican Control

In a recent interview with CNBC, Republican Senator Cynthia Lummis, a prominent advocate for crypto assets, discussed the potential for significant regulatory changes following the upcoming US

Bitcoin Breaks $66,000, But Analyst Warns Against Fresh Longs—Here’s Why

Bitcoin has shown bullish momentum during the past day, but an analyst has pointed out how the asset may be in a high-risk zone now due to the Open Interest trend Bitcoin Open Interest Has Seen A