Key Points
- Ethereum’s price is under selling pressure, despite successful launch of spot Ethereum ETFs.
- Whale activity remains strong, with significant accumulation of Ethereum despite ETF price decline.
Despite the recent launch of spot Ethereum ETFs, which attracted over $107 million in inflows, the price of Ethereum has been under selling pressure. At the time of writing, it’s down 1.1%, hovering around $3,450.
However, on-chain indicators suggest that Ethereum whale activity continues to be robust, suggesting that the downside could be limited moving forward.
Whale Accumulation and Influence
According to on-chain data from IntoTheBlock, large holders accumulated 112.9k ETH amounting to a staggering $390 million, despite the decline in the ETF price. This accumulation significantly surpasses the $106 million net inflows to Ethereum ETFs, indicating that the demand for Ethereum is strong among big market players.
Furthermore, on-chain data analytics platform Santiment reported that the introduction of the spot Ethereum ETFs has greatly influenced whale activity over the past week. Since July 17th, the number of ETH transfers exceeding $100K in value has increased by 64% compared to Bitcoin transfers and by 126% compared to USDT (on ETH) transfers.
Future Price Action
Ethereum is reportedly following a similar trajectory to Bitcoin after the approval of the spot BTC ETFs earlier this year. The Bitcoin price surge began in February as investors managed to navigate through the Grayscale outflows and the BlackRock inflows. Crypto analyst Michael van de Poppe suggests that if the markets mimic the price action of the Bitcoin ETF, Ethereum could see a slight sell-off due to the outflows of the Grayscale trust, followed by a surge towards a new all-time high.
According to a chart shared by Poppe, Ethereum might experience a reversal to $3,150 levels before resuming its upward journey.
The continuation of Ethereum ETF inflows could further instill confidence among investors. However, it remains to be seen how long these inflows will continue.
