Ethereum Whales Take Over, ETH Stuck Below $3,500: What’s Going On?
Ethereum prices are stable at spot rates, moving horizontally even after the United States Securities and Exchange Commission (SEC) approved the list and trading of spot Ethereum ETFs on July 23.
Ethereum is trending below the crucial resistances at $3,500 and $3,700 at press time. However, buyers have kept prices above $3,300 as price action moves horizontally.
Though there are expectations of volatility, reading from options data, now that spot Ethereum ETFs are available for trading, one analyst picked out a critical development that might affect the BTC-ETH dynamic.
Ethereum Whales Taking, ETH Outperforms BTC
In a post on X, Santiment data reveals an uptick in whale activity ahead of the spot Ethereum ETF in the United States. The analytics platform said multiple high-value ETH transfers have outpaced those ordinarily seen on Bitcoin and USDT since July 17.
The unusual increase in this kind of transfer could show growing confidence in Ethereum and ETH’s long-term prospects. This has even been accelerated with another crypto derivative product, providing an alternative to Bitcoin.
Looking at the ETHBTC price chart, it is evident that ETH bulls have the upper hand. After the drop in late June, the coin continues outperforming Bitcoin, sharply rising on July 23. Evident in the daily chart, there is a double-bar bullish formation signaling the presence of ETH buyers keen on funneling capital and extending gains.
ETH is finding support at the 50% Fibonacci retracement level of the May 2024 trade range, confirming the uptrend. Even so, for May buyers to take charge, bulls must clear 0.057 BTC, setting the base for further gains toward 0.08 BTC recorded in 2022.
Over $1 Billion Worth Of Spot ETF Shares Traded
Inflows into spot ETFs will fuel the bull run. As seen in Bitcoin, price performance will largely depend on interest from institutional players. Barely 24 hours after the product launched in the United States, various issuers bought $1.1 billion of ETH.
Inflows will likely rise when ETH prices break above the immediate resistance level, ideally last week’s high and $3,700. As prices stall for now, the launch of this product, a Bitwise analyst said, cements Ethereum’s role as a foundational technology in web3.
As seen from the rapid growth of the digital economy, Ethereum, the Bitwise analyst added, will see the smart contracts platform catalyze development.