Twelve new cryptocurrency wallets collectively withdrew 156,733 Ethereum (ETH), valued at around $574 million, from Coinbase, with the transactions averaging $3,664 per ETH. Despite this accumulation, Ethereum’s price has been under pressure.
Will Ethereum’s Price Drop by 7%?
On-chain analysis platform Spot On Chain reveals that 11 of these 12 wallets withdrew approximately 13,059 ETH. One wallet, in particular, identified as 0xdfa, withdrew slightly more, totaling 13,084 ETH.
At the same time, Ethereum’s presence on crypto exchanges has significantly dwindled, hitting a seven-year low, according to Glassnode’s on-chain data. Veteran crypto investor Lark Davis highlighted this trend.
“ETH supply on exchanges is at a 7-year low. Ethereum ETFs are poised to trigger a massive supply shock. Consequently, ETH prices could soar,” Davis explained.
The crypto community is abuzz with the recent approval of spot Ethereum ETFs by the US Securities and Exchange Commission (SEC). This milestone represents a significant breakthrough for the crypto market, paving the way for substantial investment opportunities similar to the early success of Bitcoin ETFs.
Prominent crypto researcher Bobby Banzai has forecasted monthly inflows of $569 million into Ethereum ETFs, drawing on the performance of international ETFs and data from the Chicago Mercantile Exchange futures.
Despite these positive developments and growing market optimism, Ethereum’s immediate price reaction has been unfavorable. Following the substantial withdrawals, Ethereum’s price has dropped over 4% from Monday’s highs and is currently trading around $3,600.
Spot On Chain suggested that these transactions from new wallets could be part of over-the-counter (OTC) deals, as they did not directly impact the market price.
Analysts recommend a cautious short-term outlook for Ethereum, predicting a potential 7% correction from its current market price. Since May 20, Ethereum has been consolidating between $3,624 and $3,950. However, this Tuesday, ETH faced challenges, trading at $3,551 and possibly breaking down from the established range. If this downward trend continues, Ethereum could find its next support level around $3,302.
The broader crypto market is also experiencing a correction phase. Over the past 24 hours, Bitcoin has declined by about 3%, BNB by nearly 7%, and Solana by 3.5%.
