- Ethereum whale sends 5,000 ETH to an exchange.
- The adoption of spot ETFs has not yet affected the price development of ETH.
An ether [ETH] Whale recently transferred about $15 million in assets to an exchange. This action took place shortly after news emerged of ETF approvals in Hong Kong.
Did the transfer of the whale affect the price, and did the adoption of the ETF also affect the price?
Ethereum whale takes profits
Dates of Look at chain reveals that an Ethereum whale recently moved 5,000 ETH to the Kraken exchange, worth over $15.4 million at the time of transfer.
Further analysis revealed that the same whale withdrew 96,638 ETH from Coinbase in September 2022. At that time, ETH was valued at approximately $1,567, bringing the value of the withdrawal to over $151.4 million.
This suggests that the recent transfer was likely done to realize a profit, given ETH’s rise to over $3,000. Currently, the whale wallet contains 76,638 ETH, now valued at over $233.5 million.
Ethereum continues to fall
An analysis of Ethereum’s daily timeframe chart reveals a recent lack of profitability. Over the past three days, ETH has experienced a consistent downtrend after surging 4% on April 14.
Despite these declines, the stock has maintained its initial 4% gain since the start of the week.
Source: trading view
At the time of writing, ETH was trading around $3,080, which represents a decline of less than 1%.
Furthermore, these declines have reinforced ETH’s bearish trend, evidenced by the Relative Strength Index (RSI) hovering around 40 and the Moving Average Convergence Divergence (MACD) indicating a trend below zero.
These metrics collectively indicate strong bearish momentum for ETH, despite some positive news from Hong Kong earlier this week.
At the time of writing, Ethereum net flow data indicated a trend of increased ETH exchanges.
However, by the end of trading on April 16, there was a positive net flow, with 10,230 ETH flowing to the exchanges. Nevertheless, at the time of writing, more than 27,000 ETH outflows have been recorded.
Source: CryptoQuant
ETF approval does not yet impact ETH price development
Multiple reports have stated that Hong Kong recently approved several spot Ethereum ETF proposals, in addition to spot Bitcoin ETF proposals.
Surprisingly, the approval has not triggered any significant reaction in the Ethereum price. This lack of response could be attributed to the lack of an official statement from the SEC regarding the approval.
Investors should be careful about celebrating prematurely, given that there have been fake news reports of spot approvals of BTC ETFs in the past.
Read Ethereum’s [ETH] Price forecast 2024-25
Even after official confirmation, the impact on the market may be insignificant due to lower trading volumes.
Unlike the substantial ETF volumes we see in the United States for BTC, the expected volume in the Hong Kong market may not be enough to drive significant market movements.