Ethereum’s price plummets as investors engage in sell-the-news behavior following the spot Ethereum ETF approval. Two more weeks of downside? By Bhushan Akolkar 9 hours ago Updated 19 mins ago
Highlights
- A giant Ethereum whale has recently dumped 10,000 ETH on Kraken minting $173 million in profits.
- Mt. Gox distributions has put pressure on Bitcoin and the overall crypto market.
- Analysts predict two weeks of downward movement before ETH uptrend resumes.
A day after the successful launch of the spot Ethereum ETF, Ethereum’s price faced significant selling pressure, plummeting over 8% to around $3,150. This decline led to a substantial liquidation of long Ethereum positions in the past 24 hours.
Ethereum Liquidations Skyrocket
As per the data from Coinglass, the total Ethereum liquidations have surged past that of Bitcoin in the last 24 hours. The data shows that Ethereum liquidations currently stand at $97.8 million while Bitcoin liquidations are comparatively at $80.9 million.
Of the total ETH liquidations, $94.4 million have been the long liquidations with only 43.3 million in short liquidations. Interestingly, most of these liquidations have come in the past 4 hours with the Ethereum price facing huge selling pressure.
It seems that the approval of the spot Ethereum ETF has actually turned out to be a sell-the-news event similar to what we saw in the case of Bitcoin earlier this year in January. With the ETH price running up to $3,500 in July, investors seem to be finally cashing out the euphoria surrounding the ETF approval.
Also Read: Hashdex Files S-1 For Combined Spot Bitcoin and Ethereum ETF
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Furthermore, on-chain data shows that a giant Ethereum whale has been offloading its coins on Wednesday, July 24. As per the data from Spot on Chain, a giant Ethereum whale minted $173 million in profit from ETH, while depositing 10,000 ETH on Kraken worth $34.2 million, just before the Ethereum price drop.
This whale had reportedly withdrawn 96,639 ETH from Coinbase from Coinbase at $1,580 in September 2022. Since March this year, the whale has moved nearly 40,000 ETH to Kraken. The whale still holds a remaining balance of 56,639 ETH valued at $188 million at the current ETH price.
A giant whale with a $173M profit from $ETH deposited 10K $ETH ($34.2M) to #Kraken 9 hours ago, just before the #Ethereum price plunged.
Notably, the whale:
➡️ withdrew 96,639 $ETH from #Coinbase at only ~$1,580 in Aug and Sep 2022;
➡️ has deposited 40K $ETH to Kraken at… pic.twitter.com/2GXNb3XtrO
— Spot On Chain (@spotonchain) July 25, 2024
Additionally, 10xResearch noted that the current Mt. Gox distributions are putting pressure on the broader crypto market.
“If this trend continues, crypto will need more help to rally. Ethereum might be the weakest link, where fundamentals (new users, revenues, etc.) have been stagnant or lower,” noted 10x Research.
Also Read: Kraken Exchange Under Fire As Some Mt Gox Creditors Complain
Is Ethereum Price Reversal Anytime Soon?
Popular crypto analyst Michael van de Poppe stated that the ETH price could see some reversal amid strong outflows from the Grayscale Ethereum Trust. ETH might see two weeks of downward movement before it resumes the rally to new all-time highs. As per the chart, Ethereum could be taking support around $3,150 before resuming upward gains.
If the markets copy the price action of the #Bitcoin ETF, then it’s likely that we’ll have a slight sell-off due to the outflows of the Grayscale trust.
One-two weeks for downward momentum, before the real surge of Ethereum towards a new all-time high. pic.twitter.com/fmjE7z7We9
— Michaël van de Poppe (@CryptoMichNL) July 24, 2024