Ethereum
$3B worth of ETH leaves crypto exchanges after SEC greenlights spot ETFs
In just over a week since the United States Securities and Exchange Commission (SECOND) Ethereum approved spot (ETH) exchange traded funds (AND F), cryptocurrency exchanges saw a significant outflow of ETH, demonstrating the impact of regulatory decisions on market dynamics.
In fact, since the securities watchdog’s approval of Ethereum spot ETFs on May 23, 2024, around 777,000 ETH – valued at around $3 billion – has left crypto exchanges, according to chart data and the observations shared by the famous cryptocurrency trading expert Ali Martinez in a Message on June 2.
Ethereum balance on exchanges. Source: Ali Martinez
In fact, the Glass knot The chart shared by the analyst shows the massive changes in the total balance of Ethereum in all crypto exchangeswhich saw a significant drop in the days following the approval of zones of around 12.5 million ETH, coinciding with a price increase.
Ethereum Price Analysis
At press time, the second largest asset in the crypto industry by market cap was trading at a price of $3,821.12, suggesting an increase of 0.75% over the past 24 hours, a decline of 2.43% over the previous seven days, while moving up by 22.94 % on its monthly chart.
More recently, this crypto The asset demonstrated significant strength against the market representative and flagship of decentralized finance (Challenge) active, Bitcoin (BTC), reclaiming a key trendline that has been extremely important for over seven years, as Finbold reported on June 1.
Ethereum ETF Effect
As a reminder, the price of Ethereum began to rise on May 20, shortly after Bloomberg Senior ETF Analyst Eric Balchunas. said that he and his colleague James Seyffart thought the chances of an Ethereum spot ETF being approved were 75%, up from 25%.
Update: @JSeyff and I’m increasing our odds of Ether ETF spot approval to 75% (from 25%), hearing talk this afternoon that the SEC may do a 180 on this issue (a growing issue). more political), so now everyone is scrambling (like us, everyone assumed they would be refused). See… https://t.co/gcxgYHz3om
– Eric Balchunas (@EricBalchunas) May 20, 2024
In the same period, Martinez also note this Ethereum whales had purchased 110,000 ETH, worth around $341 million at the time, in the 24 hours before its X post on May 20, indicating a major surge in interest from the largest holders of the market pending approval of the spot ETF.
All things considered, Ethereum’s mass withdrawal from exchanges suggests a growing preference among crypto traders and investors to secure their holdings in anticipation of a further rise in prices and a reduction in selling pressure on the stock exchanges, which is generally a bullish sign.
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