Ethereum Sees $574 Million Purchase from Coinbase Wallets Amid Market Corrections
Ethereum Market Dynamics: Large Purchases and Price Struggles
In a significant move within the cryptocurrency market, twelve cryptocurrency wallets have purchased a total of 156,733 Ethereum from Coinbase (NASDAQ: COIN) in the past few hours. This transaction, valued at approximately $574 million, was completed at an average price of $3,664 per Ethereum.
Current Market Challenges
Despite these substantial purchases, Ethereum's price is currently struggling amid broader market corrections affecting the entire crypto sector. As of now, Ethereum is trading around $3,494.18, reflecting a 4.91% decrease in the last 24 hours.
Market Insights and Investment Opportunities
For those looking to invest in crypto-related stocks during these market fluctuations, Investing Pro offers essential tools for making informed decisions. The recent massive purchase of 156,733 Ethereum, worth nearly $574 million, brings optimism for future price increases, particularly due to the decreased supply of Ethereum on exchanges, a level not seen in seven years. Investors can subscribe to Investing Pro and use the code SAPRO2 for an additional discount.
Withdrawals and Supply Dynamics
According to Spot On Chain, 11 out of the 12 cryptocurrency wallets involved in the purchase withdrew about 13,059 Ethereum each. Notably, one wallet, identified as 0xdfa, withdrew a slightly higher amount of 13,084 Ethereum.
Decreasing Exchange Supply and Market Predictions
Blockchain data from Glassnode indicates that the supply of Ethereum on exchanges has dropped to its lowest level in seven years. This trend has been highlighted by Lark Davis, an experienced crypto investor, who suggests that such a supply decrease could potentially lead to a significant price rise for Ethereum.
Ethereum ETFs and Market Optimism
The recent approval by the U.S. Securities and Exchange Commission (SEC) for Ethereum ETFs marks a crucial advancement in the cryptocurrency market, opening up opportunities for significant potential investments, similar to the early success observed with Bitcoin ETFs. Prominent crypto researcher Bobby Banzai predicts monthly inflows of $569 million into Ethereum ETFs, based on the performance of international ETFs and futures data from the Chicago Mercantile Exchange.
Short-Term Price Forecast
Despite these positive developments and overall market optimism, Ethereum's immediate price impact has been unfavorable. Spot On Chain suggests that the recent large transactions could be part of over-the-counter (OTC) deals, which do not directly influence market prices. The platform forecasts a potential 7% correction from the current market price, with the next support level for Ethereum at $3,302 if the downward trend persists.
Broader Market Impact
In the last 24 hours, other major cryptocurrencies have also experienced declines. Bitcoin has dropped by about 3%, BNB has fallen around 7%, and Solana has decreased by approximately 7%.
