Ethereum Investors Purchase $574 Million Worth of ETH

Investors pulled 156,733 ETH, valued at $574 million, from Coinbase, but ETH's price remains under pressure. With ETH supply on crypto exchanges at a seven-year low and upcoming Ethereum ETFs poised to trigger a supply shock, market dynamics could shift dramatically.

Azcnews Ethereum Investors Purchase $574 Million Worth Of Eth

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.

Ethereum Balance On Exchange
Ethereum Balance On Exchange

“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.

Ethusdt
Ethusdt

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%.

Love

0.0/5

Love

Latest

How To Participate In The Trump Wallet Airdrop

Airdrops | Editor Choice

How to Participate in the Trump Wallet Airdrop

Join the Trump Wallet airdrop, a cryptocurrency wallet provided by Magic Eden, which is airdropping 1 million TRUMP tokens to participants.

Donald Trump’s Company Files To Launch Spot Bitcoin Etf

News | Bitcoin | Editor Choice

Donald Trump’s Company Files to Launch Spot Bitcoin ETF

Truth Social, Donald Trump's social media platform, has made headlines by filing to launch a spot Bitcoin ETF, marking a bold move into the digital finance space as the crypto market heats up again.

Team Continues To Deposit $trump Into Exchanges

Memecoin | Editor Choice

Team continues to deposit $TRUMP into exchanges

This morning, a wallet allegedly belonging to the development team of the memecoin $TRUMP deposited 4.17 million $TRUMP tokens, equivalent to $46.97 million USD, onto major exchanges.

Pi Network Tops The Rankings Of Crypto Applications

Editor Choice | Pi Network

Pi Network tops the rankings of crypto applications

According to a recent survey from the Zypto VISA card, Pi Network has unexpectedly risen to the top position in terms of deposit frequency, surpassing DASH, USD1, and XRP.

Is Bitcoin Preparing For The Next Wave Of Institutional Capital

News | Bitcoin | Editor Choice

Is Bitcoin Preparing for the Next Wave of Institutional Capital?

Bitcoin is on the verge of attracting a massive wave of institutional capital, as global financial advisors gain easier access to the digital asset – setting the stage for a potential supply shock and a powerful price rally.