Markets

Ethereum Founder to Sell $37 Million in ETH Before ETF Decision

Published

11 months ago

23 May, 2024

Ethereum Co-Founder Could Sell Over $37 Million in ETH Ahead of ETF Decision

Recent significant transfers of Ethereum (ETH) to cryptocurrency exchanges have caught the market’s attention. This measure raised speculation about potential profit taking, portfolio rebalancing or market speculation.

These developments coincide with the US Securities and Exchange Commission’s (SEC) approach to the Vaneck Ethereum exchange-traded fund (ETF), which has raised expectations within the industry.

Investors transfer ETH to exchanges

Jeffrey Wilke, one of the founders of Ethereum, transferred 10,000 ETH, worth around $37.38 million, to the Kraken cryptocurrency exchange. Although the reason behind such a significant transfer is unclear, some hypotheses can be derived from it.

Making a profit: Wilke may be selling his tokens for profits. This may be due to achieving the desired return on investment or anticipating a potential downturn in the market.
Rebalancing Portfolios: Wilke may be rebalancing his portfolios by selling some tokens and buying others. This may be based on changes in market conditions, project development or your investment strategy.
Market speculation: Wilke may be speculating on short-term price movements or taking advantage of arbitrage opportunities between different cryptocurrency exchanges.

Jeffrey Wilke Portfolio Activity. Source: SpotOnChain

Whether Wilke wants to book profits, rebalance his portfolio or speculate in the market, he doesn’t appear to be alone. Looking at the Ethereum balance on exchanges reveals an increase in tokens available for sale.

Balance on Exchanges: Refers to the total amount of Ethereum held in cryptocurrency exchange wallets.

Over the past two weeks, more than 242,000 ETH has been transferred to cryptocurrency exchange wallets. This indicates an increase in trading activity on exchanges which may contribute to price fluctuations. volatility.

Ethereum balance on exchanges. Source: Glassnode

Ethereum ETF Approval Nears

The timing of these transfers is notable as it aligns with today’s SEC final decision on the Vaneck Ethereum ETF. Interestingly, on May 20th, the SEC requested Nasdaq, CBOE and NYSE to refine its spot Ethereum ETF listing applications, hinting at possible approval of these registrations.

In response to this regulatory development, Eric Balchunas and James Seyffart, ETF analysts at Bloomberg Intelligence, noted that the probability of approval has increased substantiallygoing from just 25% to a considerable 75%.

“I heard rumors this afternoon that the SEC might be doing a 180 on this increasingly political issue, so now everyone is scrambling. But again, we capped the value at 75% until we see more, for example, filing updates,” Balchunas wrote.

See more information: Ethereum ETF explained: what it is and how it works

Ethereum ETF Approval Odds. Source: Polymarket

Similarly, Polymarket, a decentralized prediction market platform that allows users to place bets on world events, show a significant increase in the chances of approval, which increased from 10% to 70% in the last 72 hours.

Warning signal for traders

Although industry leaders like Anthony Pompliano to see approval of the Ethereum ETF as an “industry-wide approval” and as “the last dam to be broken”, traders should be cautious. Rising ETH deposits in cryptocurrency exchange wallets suggest the possibility of a sell-off or increased profit-taking.

Meanwhile, the Tom DeMark (TD) Sequential indicator presents a sell signal on the Ethereum daily chart.

TD Sequential Indicator: This is a technical analysis tool used to identify potential points of market trend exhaustion and future price reversals.
- Configuration phase: This involves counting a series of nine consecutive price bars, where each bar closes higher (for an uptrend) or lower (for a downtrend) than the bar four periods prior.
- Countdown phase: After the setup phase, a countdown begins where a series of thirteen additional price bars are counted if they close lower (in a downtrend) or higher (in an uptrend) than the close of the previous two bars.

The current nine green candlesticks on the daily chart suggest that an increase in selling pressure could cause Ethereum to pull back from one to four daily candlesticks or even begin a new downward countdown phase before the uptrend resumes.

Ethereum price analysis. Source: Trading View

Despite the bearish signals seen from a technical and on-chain perspective, the In/Out of the Money Around Price (IOMAP) indicator suggests that Ethereum is above significant areas of support that could hold in the event of a correction.

IOMAP: This metric helps analyze and visualize the distribution of holders’ positions in relation to the current price. It helps you understand potential support and resistance levels based on the number of addresses holding a specific cryptocurrency at different price levels.
- In money: Refers to addresses that purchased the cryptocurrency at a price lower than the current market price, indicating potential support levels as holders are likely to sell at a profit.
- Out of money: Refers to addresses that purchased the cryptocurrency at a price higher than the current market price, indicating potential resistance levels as holders may want to break even or minimize losses.

Based on IOMAP, more than 1.81 million addresses purchased around 1.66 million ETH between $3,820 and $3,700. This demand zone could keep Ethereum’s price in check amid growing selling pressure. But if it fails to sustain, the next key area of support will be between $3,580 and $3,462, where 3.13 million addresses purchased over 1.50 million ETH.

See more information: Ethereum (ETH) Price Prediction 2024/2025/2030

Ethereum IOMAP. Source: Inside the block

On the other hand, the most important resistance barrier for Ethereum is between $3,940 and $4,054. Here, more than 1.16 million addresses had already purchased around 574,660 ETH.

If Ethereum overcomes this hurdle and prints a daily close above $4,170, the bearish outlook will be invalidated. This could result in a new upward countdown phase towards $5,000.

Summary and conclusions

Ethereum co-founder Jeffrey Wilke’s recent transfer of 10,000 ETH to Kraken is indicative of broader market activity where investors are moving significant amounts of ETH to exchanges. This trend is in line with increased trading activity, suggesting potential profit-taking, portfolio rebalancing, or market speculation among Ethereum holders. The balance of ETH on exchanges has skyrocketed, indicating a potential increase in market volatility.

This market movement comes at a critical time as the SEC is about to make a final decision on Vaneck’s Ethereum ETF. Analysts noted a substantial increase in the probability of approval, from 25% to 75%. Such regulatory developments are seen as a positive sign for the broader cryptocurrency market, potentially paving the way for more institutional investment.

See more information: How to buy Ethereum (ETH) and everything you need to know

Despite technical indicators suggesting a possible short-term downtrend, the IOMAP indicator shows strong support levels for Ethereum. This suggests that while there may be short-term corrections, underlying demand for Ethereum remains robust. Long-term holders appear confident, continuing to accumulate ETH, which bodes well for its future price stability and growth.

Disclaimer

In line with the Confidence Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyIt is Disclaimers have been updated.

Source

Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

9 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

9 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

Source

Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

9 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

9 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week