Ethereum

Savvy

Bitcoin ETF

Spot

<p>Ethereum, the second-largest crypto by market capitalization, has recently experienced an abrupt 7% drop. This sudden decline has raised many questions among investors and market observers. Let’s analyze the reasons behind this sharp fall and the factors that have contributed to this worrying situation.</p>
<h2 id="h-the-sell-the-news-effect-and-the-ethereum-etf">The ‘sell the news’ effect and the Ethereum ETF</h2>
<p>The approval of the spot Ethereum ETF initially seemed promising. Investors hoped that this novelty would stimulate the market, just like the <a href="https://www.cointribune.com/en/bitcoin-etfs-attract-over-1-billion-in-ten-days/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin ETF</a> did earlier in the year.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>However, the initial enthusiasm quickly waned. Indeed, many adopted a ‘sell the news’ strategy, selling their positions once the ETF was approved. This caused significant selling pressure on the market, contributing to the drop in ETH crypto.</p>
<p>This dynamic strangely recalls what happened with Bitcoin. Anticipation often leads to a price rise, but the execution of the event frequently sees investors cash in their gains. A lesson to remember for crypto enthusiasts: anticipate the anticipation.</p>
<p>On-chain data reveals that an Ethereum whale recently sold a substantial amount of its holdings.</p>
<p>According to <a href="https://spotonchain.com/en" target="_blank" rel="noopener noreferrer nofollow">Spot on Chain</a>, this whale deposited 10,000 ETH, worth $34.2 million, on Kraken just before the price drop, thus making a profit of $173 million. This massive sale amplified the selling pressure on the market.</p>
<p>This whale, who had withdrawn 96,639 ETH from Coinbase in September 2022, seems to have wisely maneuvered its assets. Since March, it has moved nearly 40,000 ETH on Kraken but still holds a substantial reserve. These strategic moves highlight the importance of observing the actions of major market players.</p>
<h2 id="h-the-mt-gox-distributions-and-their-impact">The Mt. Gox distributions and their impact</h2>
<p>10xResearch has highlighted another factor weighing on the crypto market: the ongoing Mt. Gox distributions. These distributions have increased the overall selling pressure on the market, particularly affecting Ethereum. If this trend continues, the crypto market will need more support to rebound.</p>
<p>The legacy of Mt. Gox, once the largest Bitcoin exchange platform, continues to haunt the market. The funds recovered after its bankruptcy are slowly being reinjected into the market, creating additional pressure that investors must monitor.</p>
<p>The famous crypto analyst Michaël van de Poppe suggests that Ethereum’s price could soon reverse its current trend.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="2">
 </div>
</div>
<p>According to him, significant outflows from the Grayscale Ethereum Trust could induce a temporary drop, followed by a strong recovery. He predicts a two-week decline before a potential return to new all-time highs.</p>
<p>If this analysis holds true, Ethereum could find support around $3,150 before resuming its upward trajectory. Investors should remain vigilant and ready to seize opportunities.</p>
<h2 id="h-the-continued-pressure-on-fundamentals">The continued pressure on fundamentals</h2>
<p>The fundamentals of Ethereum, such as the arrival of new users and the revenue generated, are stagnating or declining. This situation makes this crypto particularly vulnerable to market fluctuations. The absence of positive news and significant developments can maintain pressure on its price.</p>
<p>Currently, Ethereum is trading at $3,180, after a 7.4% drop over the last 24 hours. With a trading volume of $20.95 billion, the market remains extremely active. Investors should adopt a cautious approach and closely monitor market developments.</p>
<p>Ethereum is going through a period of turbulence, but every crisis carries opportunities within it. Savvy investors will know how to take advantage of these fluctuations to optimize their portfolios. As always in the crypto world, vigilance and responsiveness are key.</p>

Crypto: Ethereum Loses 7% – Here’s Why

Innholdsfortegnelse

Cointribune EN

Andre artikler publisert på 25. juli 2024

Forbes Attacks Harris’s Economic Policies

Ethereum Spot ETF Hype: ETH Whale Activity 64% More Than BTC

Analyst Warns Of A POPCAT Correction Following 230% Surge

Spot Ethereum ETFs: Early Outflows But Long-Term Potential Remains Strong

TOKEN2049 Singapore: Web3 Event With 20,000 Attendees

Why are crypto and TradFi markets bleeding? Bibi Netanyahu and Nasdaq at play

Bli med på vårt gratis nyhetsbrev for daglige kryptooppdateringer!