Coinspeaker
Ethereum (ETH) Price Action Suffers Bearish Outlook as Whales Engage in Selling Spree
As August approaches the end, more crypto traders are wary of a choppy September, as historical data suggests it is also a bearish month, especially after the Bitcoin (BTC) halving. The altcoin industry, led by Ethereum (ETH), is expected to continue bleeding to Bitcoin in the near term before the highly anticipated altseason. Furthermore, Bitcoin’s dominance has gradually been rising, despite reaching a major resistance level of around 57 percent. Additionally, the ETH/BTC pair has been trapped in a falling trend since the fourth quarter of 2021 to date.
Ethereum Whales Gets Fearful
The recent approval of spot Ethereum ETFs in the United States has turned out to be a sell-the-news event contrary to Bitcoin’s. According to the latest market data, Ether’s price has dropped over 28 percent in the past three months to trade at about $2,680 on Tuesday during the mid-London session.
According to the latest market data as of this writing, the US spot Ether ETFs have registered a cumulative net cash outflow of about $477 million, with only one week of net cash inflows. The notable cash outflows from Grayscale’s ETHE have significantly overshadowed the cash inflows from the rest of the spot Ether ETF issuers.
On Monday, August 26, the US spot Ether ETFs registered a net cash outflow of about $13.2 million, and currently holds around $7.4 in assets under management. Meanwhile, Bitcoin’s spot ETFs registered a net cash inflow of over $202 million and has recorded more positive weeks than the outflows.
It looks like institutions were selling $ETH today!#AmberGroup deposited 6,443 $ETH($17.62M) to #Binance and #Kraken 6 hours ago.#Cumberland deposited 6,439 $ETH($17.66M) to #Binance 3 hours ago.
Address:
0xEc9fC235A8064698A2533c2D489DEFF4fBA8226B… pic.twitter.com/PO2DzPxcWp— Lookonchain (@lookonchain) August 26, 2024
Meanwhile, on-chain data shows several whales – including Cumberland and Amber Group – have accelerated Ether profit-taking in the past 24 hours.
For instance, a previously profitable whale trader deposited over 8.8K ETH, worth $24 million, to Binance earlier today. The whale currently holds 10.6k Ether, worth over $28 million, and is currently counting an estimated loss of about $15 million.
Midterm Expectations
Following the recent crypto crash, Ethereum price against the US dollar has consistently closed below the 50 weekly Moving Average (MA) in August for the first time since last year. The large-cap altcoin, with a fully diluted valuation of about $324 billion and a daily average traded volume of around $11.4 billion, is on the verge of further bearish trend in the coming weeks.
From a technical standpoint, Ether price formed a doubled top with a bearish divergence on the weekly Relative Strength Index (RSI) for the past six months. After consistently closing below $2,900 in the recent past, ETH price is likely to continue in a bearish outlook in the near term.
Ethereum (ETH) Price Action Suffers Bearish Outlook as Whales Engage in Selling Spree
