Crypto News – What Are the Implications of Whale Deposits on Ethereum Price?
Crypto News – The second-biggest cryptocurrency in the world, Ethereum, has dropped 1.5% more in the previous day to as low as $2,884 and is still under heavy selling pressure. However, as of the time of this writing, there is a 3.33% recovery in Ether, and the price has risen to $ 2,981.
By the end of May, Ethereum investors had been counting on the spot Ethereum ETF to launch. The ETF is unlikely to launch this year in 2024, according to market analysts, who also state that the possibilities of such clearance are still extremely low. With no possible linkages between the issues and the SEC, senior Bloomberg analyst Eric Balchunas said that the likelihood of the U.S. SEC approving a spot Ethereum ETF appears to be very low.
Understanding Whale Movements
The whales have been less patient lately, as ETH doesn’t appear to be heading higher. Prominent on-chain data provider Spot On Chain has discovered noteworthy transactions involving an early ETH holder known as 0x2ce. At the current price of $2,931 per ETH, 0x2ce deposited a significant sum of 4,153 ETH, or $12.2 million, into Coinbase.
This transaction is in line with the whale’s prior travels. The whale took out 12,423 ETH from Poloneix in 2016, which was almost $137,000 at the time. Actively depositing 9,436 ETH at an average price of $2,245 per ETH, or $21.2 million, into Coinbase and Luno since 2021 is 0x2ce. The most recent data shows that 0x2ce currently has 2,566 ETH, which is worth $7.48 million. The expected profit from all of these trades is a noteworthy $28.5 million, a stunning 204% rise.
FAQ
What Does Selling Pressure Mean?
When most traders are selling and believe that the market price will drop, this is known as selling pressure.
What Does Whale Mean in Crypto?
A wallet address that has a large quantity of cryptocurrency is known as a crypto whale. Because crypto whales have the power to dramatically affect price fluctuations, the community and investors keep a close eye on them. Whales can also lead to an increase in price volatility.
Why is Ethereum dropping?
The delay in the US launch of an Ethereum spot ETF, lower network activity, and a discernible decline in the ETH burn rate all seem to be contributing factors to the bearish momentum. Consequently, since April, the price of ether has decreased by 15%.
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