An Ethereum whale recently made a large transaction of 11,215 ETH ($34.3 million) to the crypto exchange Coinbase, causing concern among community members about a potential sell-off. Such a substantial move could have a significant impact on the price of ETH. However, data from IntoTheBlock suggests that there may be a demand for these tokens, indicating that other Ethereum whales are actively accumulating more ETH.
In fact, there has been a notable increase of 132% in the large holders’ netflow to exchange netflow ratio in the last seven days, signaling that Ethereum whales are indeed accumulating more ETH. This accumulation trend is further supported by the data showing a decrease in inflow volume into exchanges by over 11% and an increase in outflow volume by 3% in the same period. These trends indicate that Ethereum investors are looking to hold onto their positions and accumulate more ETH, which could bode well for the price of Ethereum in the future.
Research firm Matrixport has also predicted that the price of ETH could rebound from its current level, partly due to the potential launch of Spot Ethereum ETFs. Bloomberg analyst James Seyffart believes that the launch of these ETFs could be imminent, as fund issuers have addressed most of the Securities and Exchange Commission’s (SEC) concerns in their S-1 filings.
Additionally, crypto analyst Leon Waidmann has pointed out that Ethereum’s dwindling supply, with 40% locked up, 28% staked, and 12% in smart contracts and bridges, could contribute to a potential rally in ETH. He anticipates that once the Spot Ethereum ETFs start trading, institutional investors will further reduce the available supply on exchanges, potentially driving up demand and prices for Ethereum.
Another crypto analyst, Follis, has drawn parallels between Ethereum’s current chart and Bitcoin’s chart before it surged over 200% last year. He suggests that the launch of Spot Ethereum ETFs could serve as a catalyst for a similar rally in ETH.
Overall, the data and predictions suggest that Ethereum may be primed for a rally in the near future, especially if the supply continues to decrease and demand increases with the introduction of Spot Ethereum ETFs. While the large transaction by the Ethereum whale initially sparked concerns of a sell-off, the broader market trends and expert analysis point towards a more positive outlook for Ethereum’s price and potential growth in the coming days.