Ethereum
Ethereum Whale Sparks Selloff Rumors With 11,215 ETH Deposit on Coinbase
A Ethereum Whale has caused panic among community members following a recent transaction suggesting they may be looking to dump their assets. This comes as a recent prediction by Matrixport research firm that the price of Ethereum could rebound significantly from its current price level.
Ethereum whales transfer 11,215 ETH
In chain data shows that Ethereum whale transferred 11,215 ETH ($34.3 million) to Coinbase crypto exchange. A trader usually makes such a move when selling these tokens, and given the number of tokens involved, such a sale could have a significant impact on the price of ETH. However, data of IntoTheBlock Market Intelligence Platform shows that there might be demand for these tokens if, indeed, this whale is looking to dump his tokens.
The ratio of large holder netflow to exchange netflow has increased by 132% over the past seven days, suggesting that Ethereum whales are actively accumulating more ETH. Flow metrics also show an accumulation trend among Ethereum Holderswith the volume of inflows into the stock exchanges down by more than 11% over the last seven days.
During this period, the outflow volume of these exchanges increased by 3%, which once again confirms that Ethereum investors are looking to hold their positions and accumulate more ETH at this point. This is undoubtedly a positive development for the Ethereum price, which could see a significant rebound thanks to this wave of accumulation.
The research firm Matrixport also predicted that the price of ETH would rebound from its current price level thanks to the Ethereum ETFs under the microscopewhich they say could be launched as early as this week.
Although this remains uncertain, market experts like James Seyffart, analyst at Bloomberg have suggested that it won’t be long before these Spot Ethereum ETFs start trading. This is because fund issuers have implemented most of the comments that Securities and Exchange Commission (SEC) had in their S-1 statements.
ETH is ready for a rally
Leon Waidmann, Cryptocurrency Analyst mentioned in an X (formerly Twitter) job that Ethereum is poised for a recovery. He made this claim based on Ethereum’s dwindling supply. He noted that 40% of Ethereum’s supply is locked up, with 28% staked and the remaining 12% in smart contracts and bridges.
Furthermore, Waidmann expects this supply to continue to decline once the Ethereum ETFs under the microscope start trading, with institutional investors by removing a large portion of supply from exchanges. Based on this, Ethereum could recover thanks to supply and demand dynamics, as demand is bound to exceed supply at some point.
Follis, cryptocurrency analyst mentioned that Ethereum’s chart looks similar to Bitcoin’s just before it soared more than 200% last year. He suggested that the Ethereum ETFs under the microscope could be the catalyst that triggers a similar rally for ETH.
Featured image created with Dall.E, chart by Tradingview.com