Ethereum (ETH) Whales Selling, Spot ETF Outflows Delay Price Climb Above Immediate Roadblocks
- PHPzOriginal
- 2024-08-22 18:18:17840browse
Ethereum is struggling for momentum and remains under immense selling pressure. As of writing, the second most valuable coin is inside a narrow range
Ethereum price analysis reveals a lack of momentum and a struggle against selling pressure. Currently trading within a narrow range, ETH faces resistance at $2,800 and could experience further losses due to several factors.
Despite hopes for an uptrend, on-chain activity shows that Ethereum whales have been selling heavily over the past month. These large addresses, typically holding a minimum of 10,000 ETH, are known to be closely monitored by the crypto community. Their decision to sell could indicate a lack of confidence in the coin's future trajectory.
As a result, other investors might follow suit by selling their ETH holdings, leading to an increase in supply. According to market dynamics, a rise in supply can put downward pressure on prices, making it harder for ETH to突破 immediate resistances.
Moreover, analysis of spot Ethereum ETFs reveals a concerning trend. Earlier this year, the approval of 19b-4 applications for spot ETF products sparked a rally in ETH prices. The S-1 registration forms were also approved, lifting prices above the $3,000 level.
However, shortly after the spot ETF began trading, we observed more outflows, particularly from Grayscale's ETHE product. Demand for the ETF has also fallen short of expectations, with over $247 million in ETH being redeemed from ETHE since its launch.
This development has contributed to the slowdown in ETH's price recovery, preventing the coin from climbing back to March 2024 highs.
According to Farside data, all spot Ethereum ETF issuers experienced outflows totaling approximately $6.5 million on August 20. The bulk of these outflows, amounting to millions of dollars, were driven by redemptions from ETHE. This trend has been consistent since August 15.
The outflows suggest that while the smart contracts platform may still be valued by investors, the immediate to medium-term outlook for ETH appears bearish, prompting traders to shift their capital to other assets.
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