An Ethereum whale has caused panic amongst community members following a recent transaction suggesting they may be seeking to offload their holdings. This comes amid a recent prediction by research firm Matrixport that Ethereum’s price could significantly rebound from its current price level.
Ethereum Whales Transfers 11,215 ETH
Onchain data shows that the Ethereum whale transferred 11,215 ETH ($34.3 million) to the crypto exchange Coinbase. A trader often makes such a move when selling these tokens, and considering the quantity of tokens involved, such a sale could significantly impact ETH’s price. Nevertheless, data from the market intelligence platform IntoTheBlock shows that there may be a requirement for these tokens if, indeed, this whale is seeking to offload their tokens.
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There was a rise of 132% in the massive holders’ netflow to exchange netflow ratio within the last seven days, which suggests that Ethereum whales are actively accumulating more ETH. The flow metrics also paint an accumulation trend amongst Ethereum holders, with inflow volume into exchanges down by over 11% within the last seven days.
Source: IntoTheBlock
During this era, the outflow volume from these exchanges has increased by 3%, further confirming that Ethereum investors wish to hold their positions and accumulate more ETH at this point. That is undoubtedly a positive development for Ethereum’s price, which could witness a major rebound due to this wave of accumulation.
Research firm Matrixport also predicted that ETH’s price would rebound from its current price level due to the Spot Ethereum ETFs, which they claimed could launch as early as this week.
While that is still uncertain, market experts like Bloomberg analyst James Seyffart have suggested that it shouldn’t be long before these Spot Ethereum ETFs begin trading. It’s because fund issuers have implemented a lot of the comments that the Securities and Exchange Commission (SEC) had on their S-1 filings.
ETH Is Primed For A Rally
Crypto analyst Leon Waidmann mentioned in an X (formerly Twitter) post that Ethereum is primed for a rally. He made this assertion based on Ethereum’s dwindling supply. He noted that 40% of Ethereum’s supply is locked up, with 28% staked and the opposite 12% in smart contracts and bridges.
Source: CoinMetrics
Moreover, Waidmann expects this supply to proceed to cut back once the Spot Ethereum ETFs begin trading, with institutional investors taking an enormous chunk of the availability off exchanges. Based on this, Ethereum could rally on the back of the availability and demand dynamics since demand is sure to outpace supply sooner or later.
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Crypto analyst Follis mentioned that Ethereum’s chart looks an identical to Bitcoin’s just before it pumped over 200% last 12 months. He suggested that the Spot Ethereum ETFs might be the catalyst that sparks an identical rally for ETH.
ETH bears push price down | Source: ETHUSDT on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com