Ether (ETH), the second-largest cryptocurrency by market capitalization, has dropped below $3,000, following Bitcoin’s decline and wiping out weekend gains. This decline is driven by large holders selling off their ETH despite growing anticipation for the potential approval of a spot Ethereum exchange-traded fund (ETF) in the U.S.
According to CoinMarketCap, ETH fell over 4% to a daily low of $2,822. Currently, it is trading at $2,914. The trading volume of ETH surged 27.25% to $13.9 billion, while its market cap stands at $350 billion.
Over the weekend, Ether briefly surpassed $3,000, hitting $3,081 before dropping as major holders sold their coins. Crypto journalist Colin Wu reported on platform X that Golem was one of the significant sellers, transferring approximately 36,000 ETH, worth $115 million, to exchanges like Binance, Coinbase, and Bitfinex over the past 37 days. Golem still holds 231,400 ETH, worth about $656 million.
Golem, a project that raised 820,000 ETH in ICO in 2016, has transferred 36,000 ETH to Binance, Coinbase, Bitfinex, etc. in the past 37 days, worth about $115 million. Currently, Golem still has 231,400 ETH, worth about $656 million. https://t.co/EjLTyeEAmz
— Wu Blockchain (@WuBlockchain) July 8, 2024
Additionally, LookonChain noted that two traders took advantage of the weekend price increase, selling around $41 million in Ether. One trader, “smartest money. eth,” deposited 6,440 ETH worth $19.5 million to Binance, incurring a $2.65 million loss (-7.74%) on this trade but maintaining a cumulative profit of $20.6 million. Another inactive whale, “0x742,” deposited 7,240 ETH worth $21.4 million to Kraken, with an estimated profit of $12.83 million, a 149% gain.
These large holders are profiting amidst the potential approval of a spot Ether ETF in the U.S. The SEC approved 19b-4 filings from major asset management firms like BlackRock and VanEck earlier this year. While the SEC has yet to approve the S-1 filings required for launching a spot Ether ETF, discussions are ongoing, with some experts predicting a potential launch by July 15 after an earlier July 4 prediction proved premature.
