Top Ethereum investors led by Jump Trading have been on a selling spree in the last few weeks, thus increasing bearish sentiment.
Amid the heightened crypto volatility, Ethereum (ETH) price plunged more than 4 percent in the past 24 hours to trade at about $2,532 on Wednesday, August 28, during the early New York session. The large-cap altcoin, with a fully diluted valuation of about $303 billion and a daily average traded volume of around $22 billion, has suffered low bullish momentum in the past six months.
Despite the historical approval of several spots Ether ETFs in the United States and other jurisdictions, Ethereum price has continued to plummet in the recent past.
The recent daily death-cross between the 50 and 200 Moving Averages (MAs) has spelled midterm bearish sentiment for the altcoin industry. Moreover, Bitcoin dominance has continued to gain ground against the altcoins, which is also confirmed by the bearish trend of the ETH/BTC pair.
Ethereum Whales Continue to Flee the Market
As Coinspeaker previously reported, the recent approval of several spot Ether ETFs in the United States has gradually turned into a sell-the-news event. According to the latest market data, the US spot Ether ETFs have registered nine consecutive weeks of cash inflows.
Led by Grayscale’s ETHE, the US spot Ether ETFs have registered a net cash outflow of about $481 million since the official launch. On Tuesday, the US spot Ether ETFs reported a net cash outflow of about $3.45 million.
Meanwhile, on-chain data shows several top Ethee whales have been selling their holdings in different centralized exchanges led by Binance. For instance, the Ethereum Foundation, which currently holds 275K ETH worth over $677 million, recently deposited 35K ETHs, worth over $93 million to Kraken.
In the past month, Jump Trading has liquidated over 88.9k Ether, worth more than $276 million, through different exchanges led by Binance and OKX. Since July 9, an ICO-linked wallet has deposited over 48K Ether, worth over $154 million, to OKX.
Other Ethereum whales perceived as diamond hands have deposited over 25K Ether to Kraken and other CEX in the past few weeks.
$ETH has painfully plunged twice in the past month (🔻23.5%).
In this 🧵, we highlight 4 key forces likely behind the sale of 197.8K $ETH ($599M), contributing to recent dumps:
• The Ethereum Foundation:
– sold 35.4K $ETH ($95M)
– still holds 275K $ETH ($677M)• Jump… pic.twitter.com/MAce0kIgMs
— Spot On Chain (@spotonchain) August 28, 2024
Midterm Expectations
Following the low demand for Ether among institutional investors in the recent past, despite the dovish sentiment from Fed Chair Jerome Powell, several analysts believe ETH price will continue to drop in September. According to veteran trader Peter Brandt, ETH price must consistently close above the support/resistance level of around $2,814 to invalidate further capitulation towards $2K.
One of the important things I look for in a trade is if it has a well-defined risk point where I can say "I am wrong" and cut my losses.$ETH is a well-defined short-side trade. Above 2830 or so the trade is wrong pic.twitter.com/Iox0NTARTk
— Peter Brandt (@PeterLBrandt) August 27, 2024
From a technical standpoint, ETH price must regain the weekly 50 Moving Average (MA) as a support level and the Relative Strength Index (RSI) should rally above 50 percent to invalidate possible capitulation in the coming weeks.
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