The second-largest cryptocurrency is on the brink of making history with the launch of spot Ethereum ETFs in the US. Traders are on high alert with Ethereum price analysis revealing that a breakout above $4,000 could be inbound not to mention the possibility of ETH reaching new record highs.
A notable 2.3% increase in the last seven precedes the launch of ETFs. However, due to resistance at $3,500, bulls must be deliberate when pushing for a breakout. Should whales decide to sell ETH following the event, a short-lived fall to $3,200 may come first before the next major trend reversal.
Ethereum Whales Deposit Into Exchanges Ahead Of ETF Launch
The Chicago Board Options Exchange (CBOE) unveiled last week that five spot exchange-traded funds (ETFs) will start trading on the platform on July 23 with the only condition being “pending regulatory effectiveness.”
In May, the Securities and Exchange Commission (SEC) licensed rule changes allowing the exchanges to list several spot Ethereum ETFs. Despite the achievement, the agency needed time to sign off on all the operators’ S-1 registration documents.
Following last week’s developments, the list of the spot ETH ETFs expected to start trading on Tuesday includes Franklin Ethereum ETF, 21Shares Core Ethereum ETF, VanEck Ethereum ETF, Fidelity Ethereum Fund, and Invesco Galaxy Ethereum ETF.
In preparation for the live trading, Ether ETF issuers have announced a raft of measures including temporarily waving and discounting fees to gain the first mover advantage.
It has been estimated the Ethereum ETFs will attract fund inflows in billions over the next few months. With such a trend, Ethereum price could gain tracking taking out the $4,000 resistance in the quest for a new record high above $5,000.
Meanwhile, Ethereum whales seem to preparing for a sell-the-news event considering noticeable blockchain activity in the last 9 days. According to Spot On Chain, two large-volume investors transferred 25,865 ETH worth approximately $89 million to centralized exchanges (CEXs).
The first investor whose address starts with 0xbec moved 11,965 ETH to Binance worth around $41.4 million at an exchange rate of $3,457. This whale currently holds 51,462 or $180 million, sitting on $29.9 million in profit.
Another whale, the multisign 0x7d6 transferred 13,900 ETH to OKX, worth roughly $47.6 million at an exchange rate of $3,427. This whale holds 188,070 ETH approximately $657 million spread across 2 wallets.
In the 9 days ahead of tomorrow’s #Ethereum ETF launch, two giant whales deposited 25,865 $ETH ($89M) to CEX!
1️⃣ Whale 0xbec moved 11,965 $ETH to #Binance at ~$3,457 ($41.4M) in the past 5 days.
• Last action: 12hrs ago
• Holding: 51,462 $ETH(~$180M)
• Est. profit: $29.9M… pic.twitter.com/q4Cs8LhkX6— Spot On Chain (@spotonchain) July 22, 2024
Increasing exchange deposits often signal incoming selling pressure. Investors transfer their holdings to exchanges intending to sell and what better time to offload the ETH than post ETF launch?
Therefore, Ethereum price analysis would help assess the future of the second-largest cryptocurrency—whether traders should expect a sell-the-news event or a breakout past $4,000.
Ethereum Price Analysis: ETH Bulls Gearing Up A Major Breakout
Ethereum price is on the cusp of breaching the $3,500 resistance during Europe business hours on Monday. Holding as immediate support is $3,450—a confluence area formed by the Bollinger bands’ middle curve and the 20-day Exponential Moving Average (EMA).
The yellow band highlights the barrier that bulls must overcome to launch ETH price forecast toward $4,000. Traders would be looking for support above this level and a daily close to ascertain the uptrend’s continuation.
Should whales counter the Ethereum ETF launch, support areas at $3,400 (the grey band) and $3,200 would function as liquidity sources for a stronger rebound to achieve new record highs.
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Frequently Asked Questions
According to the CBOE listings, Ether ETFs will begin trading on July 23, 2024.
Some whales have been transferring ETH to exchanges hinting at incoming selling pressure. The transfers precede the launch of Ether ETFs, risking the expected rally above $4,000.
The launch of Ethereum ETFs is a historical moment for the crypto industry. It has been projected that the products will attract billions of dollars in the coming months. This could fuel ETH price to new all-time highs.
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