Key Points
- Ethereum whales are preparing for the potential launch of a US spot ETH ETF, moving $122 million worth of ETH to exchanges.
- Despite this, the overall amount of ETH held by exchanges is still showing a net outflow, suggesting a slight bullish expectation.
In anticipation of a potential US spot Ethereum (ETH) ETF launch on July 23, several major Ethereum holders, also known as whales, have moved roughly $122 million worth of the cryptocurrency to centralized exchanges (CEXes). This move is believed to be in preparation for significant sell-offs.
Spot On Chain, an on-chain analysis platform, has reported that $89 million worth of ETH has been transferred to Binance and OKX exchanges over the past nine days.
Additional Ethereum Movement
On July 22, during the early London trading session, another Ethereum whale moved $33.6 million worth of the cryptocurrency to Coinbase. This transaction brought the recent total of Ethereum being prepared for sale by these whales to over $122 million, just ahead of the possible launch of the ETH ETF.
What Does This Mean for Ethereum?
Despite the impending Ethereum sell-off by these whales, the overall amount of Ethereum held by exchanges was still showing a net outflow, as indicated by the Exchange Net Position Change metric. This means that more Ethereum was being moved out of exchanges than in, suggesting a slight bullish expectation ahead of the ETF launch.
However, the sentiment was bearish on the derivatives side of the Ethereum market, as shown by the Taker Buyer Sell Ratio dipping below 1. This suggests that there were more sell volumes than buys on the derivatives markets.
This could potentially delay a short-term price recovery for Ethereum if the metric remains below 1. Moreover, Ethereum rallied 8.9% in the past week and retested the $3,500 level. This recovery followed a broader market relief after dipping below $3000.
The recovery, however, stalled near $3.5K as the market awaited the launch and trading of the US spot Ethereum ETFs. With some Ethereum whales ready to sell significant holdings ahead of the launch, the short-term reaction of Ethereum’s price remains to be seen.
