Ethereum
Ethereum In Demand As Investors Buy The Dip By Investing.com
Investir.com – Twelve cryptocurrency wallets purchased 156,733 from Coinbase (NASDAQ:) in the past few hours, worth approximately $574 million. This transaction was made at an average price of $3,664 per Ethereum.
However, despite these purchases, the price of Ethereum is struggling in the face of corrections that have affected the cryptocurrency market in general.
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Will Ethereum price drop by 7%?
According to data from analytics platform Spot On Chain, 11 out of 12 cryptocurrency wallets withdrew around 13,059 Ethereum. Notably, one of the wallets – 0xdfa, withdrew a slightly higher amount, 13,084 Ethereum.
Meanwhile, the supply of Ethereum on cryptocurrency exchanges has declined significantly, reaching its lowest level in seven years, as reported by blockchain data from Glassnode. Lark Davis, an experienced crypto investor, highlighted this trend.
“Ethereum supply on exchanges is at a 7-year low and as a result, the price of Ethereum could increase significantly.”
At the same time, the crypto community is abuzz with the recent approval from the United States Securities and Exchange Commission (SEC) for Ethereum ETFs. This development represents a crucial step forward for the cryptocurrency market, opening the door to significant potential investments, mirroring the early success seen with ETFs.
Meanwhile, prominent crypto researcher Bobby Banzai predicts monthly inflows of $569 million into Ethereum ETFs. Its predictions are based on the performance of international ETFs and futures data from the Chicago Mercantile Exchange.
Despite these positive developments and market optimism, the immediate impact on Ethereum price was unfavorable. Following these large purchases, the Ethereum price fell by 4.91% in the last 24 hours and is currently trading around $3,494.18. Spot On Chain attributed this to the possibility that transactions from the new wallets could be part of over-the-counter (OTC) offerings, which do not directly affect the market price. The data analytics platform’s forecast indicates cautious near-term expectations for Ethereum, predicting a potential correction of 7% from the current market price.
Nonetheless, Ethereum faced challenges on Tuesday as the digital currency market underwent a price correction. If this downtrend continues, Ethereum’s next support level could be $3,302.
Over the past 24 hours, it has fallen about 3%, fallen about 7% and is down about 7%.