2 months ago
16 ARTICLE AD
The supply of Ethereum on centralized exchanges has remained stagnant since March this year, despite the approval of US spot Ether ETFs.
Key Notes
Ethereum price has gradually followed Bitcoin in a bullish recovery triggered by the Fed’s rate cut.On-chain data analysis shows that Ether whales have been dumping in the recent past.As the crypto market celebrated the onset of the interest rate cuts period in the United States, Bitcoin BTC $63 152 24h volatility: 5.6% Market cap: $1.25 T Vol. 24h: $52.31 B price led the altcoin industry in mild recovery, whereby Ethereum ETH $2 444 24h volatility: 6.0% Market cap: $294.84 B Vol. 24h: $21.40 B price had surged nearly 6 percent in the past 24 hours to trade about $2,436 on Thursday during the early New York session. The large-cap altcoin, with a fully diluted valuation of about $293 billion and a daily average traded volume of around $19 billion, has rebounded from a crucial support range, thus signaling the end of the multi-week correction phase.
Despite the recent daily death-cross between the 50 and 200 Moving Averages (MAs), Ethereum price against the US dollar has been forming a reversal pattern. Furthermore, Eth’s price in the daily time frame established a solid support range between $2,147 and $2,255, which resulted in a potential triple bottom.
As the daily Relative Strength Index (RSI) continues to form a rising divergence, a fresh bullish trend will be confirmed if the ETH price consistently closes above $2,450 in the coming days.
In case the crypto bullish sentiments continue in the near term, ETH price will be aiming for $2,768, which coincides with 1.618 daily Fibonacci Extension.
Ethereum Whales Remains Undecided
According to on-chain data analysis provided by Coinglass, Ethereum supply on centralized crypto exchanges (CEXs) has remained largely unchanged at around 15.3 million units since March despite the more than 15 percent price correction. The supply of Ether on CEXs was expected to drop in the recent past, especially due to the approval of the US spot Ethereum ETFs.
However, the US spot Ether ETFs have registered a cumulative cash outflow of about $615 million since the approval in July.
Notably, the US spot Ether ETFs have registered five consecutive cash outflows, thus significantly underperforming compared to Bitcoin’s. The cumulative outflows in the spot Ether ETFs are expected to continue in the near term, as Grayscale’s ETHE, which has over $2.7 billion in assets under management (AUM), continues to bleed.
On Wednesday, the US spot Ether ETFs registered a net cash outflow of about $9.7 million, whereas only BlackRock’s ETHA reported a cash inflow of around $4.92 million.
Meanwhile, on-chain data shows that an ancient whale investor, who received 50K ETH during the Ethereum Initial Coin Offering (ICO), deposited around 10K Ether units, worth over $24 million to the Kraken exchange.
An #Ethereum ICO participant deposited 10,000 $ETH($24.37M) into #Kraken 15 minutes ago after being dormant for 2 years!
The participant received 50,000 $ETH(ICO cost was $15.5K, now worth $121.85M) at #GENESIS.https://t.co/cuEosgIONq pic.twitter.com/PK4KePNFvu
— Lookonchain (@lookonchain) September 19, 2024
Bigger Picture
The Ethereum network remains the undisputed leader in web3 space, with over $46 billion in total value locked (TVL) out of the total $82 billion. Additionally, the Ethereum network has the lion’s share in the stablecoins market cap of about $83 billion.
Despite the emergence of the new layer one blockchain, the Ethereum ecosystem through its EVM network will continue to grow exponentially in the future.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Cryptocurrency News, Ethereum News, News
Let’s talk web3, crypto, Metaverse, NFTs, CeDeFi, meme coins, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!
