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- With the approval of spot Bitcoin ETF only awaiting the final signal from the US SEC, whale investors are now doubling down on Ethereum spot ETF in the United States as the next major drive factor.
- Ethereum bulls must defend the support level around $2, 142 to avoid further selloff amid the ongoing price reversal pattern on the daily time frame.
The past few weeks have been a bee hive of on-chain activity triggered by whale investors seeking to capitalize on the heightened crypto bullish outlook. The leading stablecoin issuer Tether USDT has printed several billions of dollars in the past few weeks, thus increasing the purchasing power.
The Wednesday, January 10, deadline for the United States Securities and Exchange Commission (SEC) to issue the final decision on the Ark 21Shares Bitcoin ETF has significantly raised hopes for approval after years of push and pull.
Moreover, the dozen spot Bitcoin ETF applicants led by BlackRock, Grayscale Investments, Fidelity, and Ark Invest among others have been meeting with the agency’s officials to clarify certain crucial features.
With ETF experts having issued a 90 percent chance of imminent spot Bitcoin ETF approval in the United States anytime, crypto whales have purchased more than $180 million worth of Ether in the past few weeks. The crypto whales including Tron founder Justin Sun understand that Ether’s price will move in tandem with Bitcoin should the US SEC approve the dozen spot ETFs by Wednesday.
Whales are accumulating $ETH!
Whale"0x9314" spent $48M to buy 21,192 $ETH at $2,265 from the DEX 10 hrs ago, and has bought 79,980 $ETH($143M) since Jan 1.#JustinSun withdrew 11,267 $ETH($25.3M) from #Binance 5 hours ago and 17,433 $ETH($39.2M) from #Binance since Dec 26.… pic.twitter.com/HQloK4pm9n
— Lookonchain (@lookonchain) January 5, 2024
Meanwhile, according to on-chain data analysis provided by Lookonchain, venture capital Paradigm which has successfully traded Ether by accumulating in bear markets and selling in bull markets has deposited 6,500 ETH worth approximately $14 million in Coinbase Global.
The significant deposit by Paradigm is a signal of incoming volatility in the crypto market. Nonetheless, the firm is still a major holder of ETH, which it has been accumulating in the past two years.
It seems that #Paradigm deposited 6,500 $ETH($14.67M) into #Coinbase 2 hours ago.#Paradigm is very smart, accumulating $ETH in bear markets and selling $ETH in bull markets.https://t.co/TF3lEGhJvZ pic.twitter.com/XI5LV075iH
— Lookonchain (@lookonchain) January 6, 2024
Closer Look at Ethereum Price Analysis
Ethereum price has been consolidating between $2,400 and $2,140, a crucial range that has solidified the macro bullish breakout of the entire altcoin industry. In the short-term perspective, ETH/USD has been forming a possible reverse pattern, whereby a triple top has been accompanied by bearish divergence on the daily Relative Strength Index (RSI). Additionally, the weekly RSI did not consistently remain above the 70 level after attempting to cross following the bear market that began in early 2021.
Ether Market Outlook
From the macro perspective, the approval of spot Bitcoin ETF and the highly anticipated fourth halving in April will drive the entire altcoin industry in tandem with Bitcoin price action, possibly until the end of 2025. Consequently, Ethereum is expected to be among the largest beneficially since it is the largest layer one network with more than $28 billion in Total Value Locked (TVL) and over $69 billion in stablecoins market cap.
Notably, Ethereum has a market cap of about $265 billion, only three times less than that of Bitcoin, and a daily trading volume of around $17 billion. Meanwhile, ETH/USD has dropped about 4 percent in the past week to trade at
