Close this search box.

Ethereum’s Recent Price Drop: Whale Activity and ETF Delays Unpacked

Ether (ETH) drops below $3,000 following Bitcoin's decline. Large holders sell off ETH despite hopes for a spot ETF approval, impacting the market.
Ethereum’s Recent Price Drop

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.

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.


New Post

Read more

Bitcoin ETFs see record inflows in July, signaling strong investor sentiment and driving Bitcoin, Ethereum, and altcoins higher.
Mastercard integrates its API with Alchemy Pay to enhance security for crypto solutions, reducing fraud with advanced machine learning and boosting user protection.
Some firms have proposed business practices that the SEC agrees could exempt them from controversial crypto accounting guidance, according to an SEC source.