Ethereum Price Falls Despite Record Whale Transactions Following Spot Ethereum ETF Launch

The launch of Spot Ethereum ETFs was expected to be a positive price movement for Ethereum. However, contrary to these expectations, Ethereum’s price entered a downward trend. Ethereum, which was traded at $3,500 at the beginning of the week, fell to $3,100, indicating a “sell on the news” trend among market participants.

Despite the negative price movement, Ethereum whales are observed to be exhibiting unprecedented activity. IntoTheBlock’s on-chain data shows a significant increase in large transaction volumes. On July 24, Ethereum whales moved a total of 3.50 million ETH in 24 hours, an amount not seen since the initial launch of Spot Ethereum ETFs.

Moreover, this activity continued, reaching a new peak of 3.68 million ETH on July 25. This metric tracks transactions exceeding $100,000, suggesting that large traders are extremely active despite the market decline.

Whale movements sometimes indicate broader market trends. Whale transaction tracker Whale_Alerts has noted several significant ETH transactions on social media. While some analysts interpret these movements as outflows to exchanges, others see them as signs of accumulation, indicating mixed sentiment within the market.

IntoTheBlock’s data paints a mixed picture of whale behavior. Large wallets saw a 12.42% increase in inflows over a seven-day period, while outflows increased dramatically by 38.17%, resulting in a net flow decline of 100.65%. These statistics highlight that outflows are significantly greater than inflows, and that large-scale holders are likely to sell their ETH.