Are Ethereum Prices Headed for a Drop?
If you’re a crypto enthusiast, you might be curious about recent movements in the Ethereum market. Twelve new crypto wallets recently withdrew a significant amount of Ethereum from Coinbase, amounting to a whopping $574 million. Despite this massive accumulation of ETH, the price of Ethereum has been facing some challenges.
The Withdrawals
- Twelve new crypto wallets collectively withdrew 156,733 Ethereum (ETH) from Coinbase.
- The transaction was conducted at an average price of $3,664 per ETH.
- 11 out of the 12 wallets withdrew approximately 13,059 ETH each.
- One wallet, identified as 0xdfa, withdrew a slightly higher amount of 13,084 ETH.
Ethereum’s Availability
As observed by on-chain data from Glassnode, Ethereum’s availability on crypto exchanges has drastically decreased, hitting a seven-year low. This scarcity of ETH on exchanges has caught the attention of industry experts, including experienced investor Lark Davis.
“ETH supply on exchanges is at a 7-year low. Ethereum ETFs are about to cause a massive supply shock. As a result, the price of ETH could skyrocket,” Davis highlighted.
Regulatory Developments
- The recent approval of spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) has created a buzz in the crypto community.
- This milestone signifies a significant leap forward for the crypto market, setting the stage for potential high-value investments similar to those witnessed with Bitcoin ETFs.
Market Impact
- Despite the positive sentiment surrounding Ethereum and the approval of ETFs, the immediate impact on Ethereum’s price has been less favorable.
- Following the substantial withdrawals, Ethereum’s price experienced a decline of over 4%, settling around $3,600.
- Spot On Chain analysis indicates that the recent wallet transactions might be linked to over-the-counter (OTC) deals rather than directly influencing market prices.
Short-Term Outllook
- Analysts foresee a cautious short-term trajectory for Ethereum, projecting a potential 7% correction from its current market price.
- Since May 20, Ethereum has been consolidating within the price range of $3,624 to $3,950.
- However, recent trends suggest a possible breakdown from this established range, with Ethereum trading at $3,551 and potentially finding support around $3,302 if the downward trend persists.
Market Trends
- In the broader crypto market, other major cryptocurrencies like Bitcoin, BNB, and Solana have also experienced corrections in the past 24 hours.
- Bitcoin has seen a 3% decline, BNB nearly 7%, and Solana around 3.5%.
By
By
By
By
By