News
Massive Withdrawals Signal Rising Ether Price
5:10 p.m. ▪ 3 min read ▪ by Luc Jose A.
Ether is generating renewed excitement as the launch of Ether spot ETFs approaches. Indeed, massive withdrawals of ETH from crypto exchanges have recently been observed. This phenomenon, coupled with the arrival of ETH ETFs, could signal the beginning of a significant bullish phase for the altcoin.
A historic accumulation of ether
The latest figures from Glassnode, shared by crypto analyst Leon Waidmann, show a significant acceleration in Ether withdrawals from crypto exchanges. Over the past seven days, around $126 million worth of ETH has been withdrawn from these platforms. According to Waidmann, these withdrawals are usually a very positive indicator for prices. This phenomenon began in March 2024 but gained momentum in the third quarter of the year. The decrease in ETH reserves on exchanges occurred after the asset’s price reached a three-year high above $4,000. However, ETH has corrected in the last 24 hours. Currently, the altcoin is flirting with $3,500.
The increase in withdrawals coincides with the current sentiment in the cryptocurrency market and the growing expectations around the launch of an Ether spot ETF. Investors appear to be withdrawing their funds and placing them in private wallets. This move could indicate an anticipation of future gains and a desire to reduce exposure to the risks associated with trading.
Spot Ether ETFs to launch soon
On July 20, 2024, the Chicago Board Options Exchange (CBOE) announced that the first spot Ether ETF would launch on July 23, 2024. This event will mark a major milestone for Ether-related financial products. According to Waidmann, “the launch of these ETFs could be a powerful bullish catalyst for ETH prices.”
Despite positive expectations, some experts are cautious. JP Morgan anticipates more muted interest in these funds compared to the Bitcoin ETFs launched earlier this year. The JP Morgan analyst notes that “enthusiasm for Ether ETFs may not reach the level seen for Bitcoin, due to slower adoption and lingering investor wariness.”
The strong accumulation of ETH and the ETF launch imminent could propel ETH prices to new highs. However, caution from some experts indicates that the actual impact on the market remains uncertain. Investors will need to remain vigilant to determine if any countervailing factors could influence this trend.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I am committed to raising awareness and informing the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.