Metalpha Whale Transactions Affect ETH Prices, But a Bullish Trend May Emerge Soon

Prices of Ethereum in the market fell after Metalpha made huge transactions in the market. The first withdrawal from Lido and the subsequent deposits

Cryptocurrency platform Metalpha has made large transactions that influenced the price of ETH.

After withdrawing nearly 6,000 ETH from Lido, Metalpha proceeded to deposit two large sums of ETH into Binance. The first of these deposits, at 03:03:04 UTC, amounted to 8,088.8 ETH, valued at $18.05 million. This was followed by another substantial deposit of 5,500 ETH at 03:04:21 UTC, bringing the total to an additional $12.9 million.

Upon making these transactions, Metalpha's ETH holdings decreased significantly. At the same time, the price of ETH in the market dropped from $3,460 to $3,393, indicating a decrease of about 2.3% in recent hours.

At the time of writing, ETH was trading at $2,370. This price movement suggests a bearish trend in the crypto market, influenced by the selling pressure exerted by large crypto investors, known as whales.

These actions by Metalpha are part of a broader pattern observed within the Ethereum whale ecosystem, where investors holding massive amounts of ETH have been engaged in selling their assets since Ethereum peaked in 2021. This activity exerts significant pressure on the market, and recent shifts indicate potential short-term fluctuations.

Following a 6% decrease, Ethereum is yet to fully recover from the price drop. Notably, the selling pressure from whales has been observed to coincide with periods of weak macroeconomic conditions.

For instance, between September 5 and 6, Ethereum's price dropped by nearly 13%, decreasing to $2,285, which aligns with the activities of whales and the overall market trend.

According to technical analysis, the price of Ethereum is currently displaying a bullish divergence against indicators like the RSI and AO on the dailyの時間枠, suggesting a potential bounce-up possibility.

If this scenario unfolds, ETH could rally to $2,618, presenting a potential increase of 15%, although much resistance might limit any potential recovery.

Meanwhile, VanEck has announced the closure of its Ethereum Futures ETF due to low demand, impacting the price of ETH.

The company plans to dissolve the fund by September 23. This move comes as a response to the increasing trend in the Ethereum spot ETF, which has prompted traders to shift their attention away from futures-based ETFs.

Adding to this, the total assets of the futures ETF are still quite small compared to spot products.

VanEck Winds Down ETH Futures ETF

VanEck will close its Ethereum Strategy ETF (EFUT), which launched in Oct 2023 and held ETH futures contracts, due to insufficient asset growth compared to its spot ether ETF, ETHV.

EFUT, managing only $21 million in assets, struggled as… pic.twitter.com/CtSt3rKUxr

As a result, this development has not led to any significant market changes. However, it is important to note that the closure of the VanEck Ethereum Futures ETF is a timely measure, considering that spot Ethereum ETFs have been gaining momentum ever since the U.S. Securities and Exchange Commission permitted their launch earlier this year.

Currently, these funds hold billions of dollars in assets, strengthening their dominance over futures-based ETFs. However, the overall strength of Ethereum has not been strong and traders are concerned with more downside risks.

At the moment, as Ethereum is under pressure from whale sell-offs and other factors, it is difficult to predict its future price trends. The ETH open interest (OI) has retouched local highs, showing the increasing attention of the market.

However, without a noticeable price rebound in Bitcoin or an improvement in the macroeconomic environment, Ethereum might fail to recover from the recent losses soon.

Traders and investors will be looking for the bounce-up possibility especially when the bullish divergence is present on the dailyの時間枠 of Ethereum. If this rally happens then the ETH might face a barrier at $2,618 but further downside might lead the prices back to $2,000 levels.

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