Are whales ready to sell after ETH ETF launch?

The bullish path is opening for Ethereum to surpass $4,000 and approach previous all-time highs. This bullish outlook paves the way for the launch of Ethereum spot ETFs this week. Based on the current Ethereum price analysis, the support at $3,400 is crucial for the continuation of the uptrend despite the strange whale activities over the past two weeks.

Ethereum whales deposit funds onto exchanges ahead of ETF launch

The Chicago Board Options Exchange (CBOE) revealed last week that five cash exchange-traded funds (ETFs) will begin trading on the platform on July 23, with the only condition being “the effective date of regulations.”

In May, the Securities and Exchange Commission (SEC) approved rule changes allowing exchanges to list many stocks for cash. Ethereum ETFDespite this success, the agency needed time to sign all of the operators’ S-1 registration documents.

Following last week’s developments, the list of spot ETH ETFs expected to begin trading on Tuesday includes Franklin Ethereum ETF, 21Shares Core Ethereum ETF, VanEck Ethereum ETF, Fidelity Ethereum Fund, and Invesco Galaxy Ethereum ETF.

In anticipation of live trading, Ether ETF issuers have announced a series of measures, including the temporary removal and reduction of fees, in order to benefit from first-mover advantage.

Ethereum ETFs are estimated to attract billions of dollars in inflows in the coming months. With such a trend, Ethereum Price could gain ground by overcoming the $4,000 resistance in the quest for a new record high above $5,000.

Meanwhile, Ethereum whales appear to be preparing for a news sell-off event given the notable activity on the blockchain over the past 9 days. According to Spot On Chain, two high-volume investors moved 25,865 ETH worth around $89 million to centralized exchanges (CEXs).

The first investor whose address starts with 0xbec transferred 11,965 ETH to Binance worth about $41.4 million at an exchange rate of $3,457. This whale currently holds 51,462, or $180 million, and has $29.9 million in profits.

Another whale, multisignature 0x7d6, transferred 13,900 ETH to OKX, worth about $47.6 million at an exchange rate of $3,427. This whale holds 188,070 ETH, or about $657 million, spread across 2 wallets.

Increased deposits in stock markets often signal incoming selling pressure. Investors move their holdings into stock markets with the intention of selling them and what better time to offload their holdings? ETH than the launch of the ETF?

Therefore, Ethereum price analysis would help assess the future of the second-largest cryptocurrency, namely whether traders should expect a sell-off event on the news or a breakout beyond $4,000.

Ethereum Price Analysis: ETH Bulls Prepare For Major Breakout

Ethereum price is on the verge of breaking the $3,500 resistance during European business hours on Monday. Immediate support is at $3,492, a confluence zone formed by the middle line of the Bollinger Bands and the 20-day exponential moving average (EMA).

Ethereum Price Analysis Chart | Tradingview

The yellow band highlights the barrier that the bulls must overcome to get going ETH Price Prediction towards $4,000. Traders will look for support above this level and a daily close to determine the continuation of the uptrend.

If whales thwart the Ethereum ETF launch, the support areas at $3,400 (the gray band) and $3,200 would act as sources of liquidity for a stronger rally to reach new record highs.

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Frequently Asked Questions

According to CBOE listings, Ether ETFs will begin trading on July 23, 2024.

Some whales have been transferring ETH to exchanges, hinting at upcoming selling pressure. The transfers come ahead of the launch of Ether ETFs, putting the expected rally above $4,000 at risk.

The launch of Ethereum ETFs is a historic moment for the cryptocurrency industry. It has been projected that the products will attract billions of dollars in the coming months. This could propel the price of ETH to new all-time highs.

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