Key Points
- Ethereum’s price has been negatively impacted by increased on-chain activities of whales.
- Despite the bearish outlook, Ethereum remains a popular choice among institutional investors due to its spot Ether ETFs.
The cryptocurrency market, dominated by Bitcoin (BTC) and Ethereum (ETH), has been experiencing a bearish trend in the last 24 hours. The total market cap of cryptocurrencies has decreased to approximately $2.39 trillion, leading to a forced liquidation of over $256 million in the past day, primarily involving long traders.
Latest data indicates that Ethereum’s price has fallen by over 8 percent in the past two weeks, trading around $3,141 on Friday during the mid-London session.
Ethereum’s Falling Trend and Whales’ Activities
The price of Ethereum has slipped below key support levels, including the daily 50 and 200 Moving Averages (MAs). Technically, Ethereum’s price has been in a downward trend for the past five months, even though it has established a solid support range between $2,814 and $2,927.
The Ethereum network has been a preferred choice among institutional investors in the altcoin industry following the approval of several spot Ether ETFs in the United States. These ETFs have provided institutional investors with a way to diversify their crypto portfolios.
Following the approval of the US-based spot Ether ETFs, the third day of net cash inflow was recorded yesterday, with approximately $26.7 million. Grayscale’s ETHE recorded a net cash outflow of about $77.95 million on Thursday, currently holding about $6.27 billion in total assets.
Increased Cash Inflows and Whale Activities
BlackRock’s ETHA and Filedilty’s FETH registered net cash inflows of about $89.66 million and $11.70 million respectively. In total, the US-based spot Ether ETFs have recorded a net cash outflow of about $456.43 million, with total assets under management of about $8.72 billion.
On-chain data analysis indicates that a whale address, associated with Elwood Technologies, deposited 19,500 ETH units, worth about $63.66 million, to the Binance crypto exchange in the past two days.
The Ethereum network continues to lead in the web3 ecosystem, with more than $56 billion in total value locked and over $78 billion in stablecoins market cap. As Ethereum celebrated its 9th anniversary, co-founder and lead developer Vitalik Buterin proposed several upgrades to keep the network competitive.
Despite the growing demand from institutional investors, Ethereum’s price has been consolidating recently, suggesting a sell-the-event narrative. However, Ethereum’s price is expected to reach its all-time high during the fourth quarter, driven by the anticipated interest rate cut and general election in the United States.
From a technical perspective, Ethereum’s price could fall to as low as $2,725 if the support level around $2,927 fails to hold in the coming weeks.
