In a notable move, twelve cryptocurrency wallets acquired a substantial amount of Ethereum, totaling 156,733 units, from Coinbase (NASDAQ) within the past few hours, marking a transaction valued at approximately $574 million. The acquisition was executed at an average price of $3,664 per Ethereum.
Despite the significant purchase, Ethereum’s price has been grappling with challenges amidst broader corrections affecting the cryptocurrency market.
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As speculation looms regarding Ethereum’s price movement, recent data from the analysis platform Spot On Chain reveals that 11 out of the 12 cryptocurrency wallets withdrew approximately 13,059 Ethereum each. Interestingly, one wallet, identified as 0xdfa, withdrew a slightly higher amount, totaling 13,084 Ethereum.
Simultaneously, blockchain data from Glassnode underscores a significant decline in Ethereum supply on cryptocurrency exchanges, hitting its lowest level in seven years, as emphasized by crypto investor Lark Davis.
In tandem with these developments, the crypto community is abuzz with news of the U.S. Securities and Exchange Commission’s (SEC) approval for Ethereum ETFs, marking a pivotal milestone for the cryptocurrency market and unlocking avenues for substantial investments, akin to the early success witnessed with Bitcoin ETFs.
Further buoying Ethereum’s prospects, renowned crypto researcher Bobby Banzai foresees monthly inflows of $569 million into Ethereum ETFs, drawing insights from international ETF performance and futures data from the Chicago Mercantile Exchange.
Despite these favorable indicators and market sentiment, Ethereum’s immediate response has been less than ideal. Following the substantial purchases, Ethereum witnessed a 4.91% decline in the last 24 hours, currently trading around $3,494.18. Spot On Chain attributes this downturn to the possibility of transactions from new wallets being part of over-the-counter (OTC) deals, thus not directly influencing market prices. The platform’s analysis hints at cautious short-term expectations for Ethereum, with a potential 7% correction forecasted from the current market price.
Nevertheless, Ethereum faces headwinds amidst Tuesday’s market correction in the digital currency space. If the downward trajectory persists, Ethereum’s next support level could be tested at $3,302.
Over the last 24 hours, Bitcoin has observed a 3% decline, BNB has dipped by approximately 7%, and Solana has recorded a similar decrease of around 7%.
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