Ethereum is also following the same trajectory that Bitcoin did after the approval of the spot BTC ETFs earlier this year.
While the spot Ethereum ETFs saw a successful launch with more than $107 million in inflows on Tuesday, ETH price has been under selling pressure being 1.1% down at press time and close to $3,450 levels.
However, on-chain indicators suggest that the Ethereum whale activity continues to remain robust hinting that the downside could be limited from here onwards.
As per the on-chain data from IntoTheBlock, large holders amassed 112.9k ETH for a staggering $390 million despite the decline in the ETF price yesterday. This accumulation significantly exceeds the $106 million net inflows to Ethereum ETFs. This shows that the demand for Ethereum is absolutely strong among big market players as of now.
Similarly, on-chain data analytics platform Santiment reported that the introduction of the spot Ethereum ETFs has significantly influenced whale activity over the past week. Since July 17th, the number of ETH transfers exceeding $100K in value has increased by 64% compared to BTC transfers and by 126% compared to USDT (on ETH) transfers.
🐳 Whale activity is clearly being impacted by the release of Ethereum's 9 new spot ETF's. Since July 17th, the amount of ETH transfers exceeding $100K in value is +64% higher than the amount of BTC transfers, and +126% than the amount of USDT (on ETH) transfers. 🤯 pic.twitter.com/SnLem6ko5G
— Santiment (@santimentfeed) July 23, 2024
Ethereum Price Action Going Ahead
Reportedly, Ethereum is also following the same trajectory that Bitcoin did after the approval of the spot BTC ETFs earlier this year. The Bitcoin price surge started actually in February as investors ultimately managed to settle through the Grayscale outflows and the BlackRock inflows. Popular crypto analyst Michael van de Poppe wrote:
“If the markets copy the price action of the Bitcoin ETF then it’s likely that we’ll have a slight sell-off due to the outflows of the Grayscale trust. One-two weeks for downward momentum, before the real surge of Ethereum towards a new all-time high”.
As per the below chart shared by Poppe, Ethereum might see a reversal to $3,150 levels before resuming the upward journey.
Photo: Poppe / TradingView
Also, it will be interesting to see how long the Ethereum ETF inflows continue thereby instilling confidence among investors.
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