Ethereum faces selling pressure from whales amid election-related uncertainty.
Institutional demand for Ethereum ETFs remains weak, impacting price recovery.
As the cryptocurrency market grapples with uncertainty surrounding the U.S. presidential election, Ethereum (ETH) has experienced significant downward pressure. Currently trading at approximately $2,443, ETH has seen a 0.73% decline in the past 24 hours and a steep 7% drop over the last week. Despite a slight recovery in total market cap, which is up 0.18%, and a notable 12.5% increase in trading volume over the same period, many altcoins have also faced dips.
Recent data reveals that Ethereum’s market cap stands at $297.4 billion, with a 24-hour trading volume of $12.34 billion. Analysts suggest that ongoing selling activity from large holders, or whales, could hinder ETH’s price recovery, with concerns mounting over the asset’s ability to surpass the $3,000 resistance level.
Notably, a prominent whale recently withdrew over 96,000 ETH from Coinbase, resurfacing after a 40-day absence to transfer 15,000 ETH to Kraken, potentially signaling further selling pressure. Additionally, a Cosmos Network wallet transferred 3,500 ETH to Coinbase, underscoring the trend of significant withdrawals impacting the market.
Will ETH Break Out Soon?
Despite this, market sentiment may shift positively if the election results lead to renewed bullish momentum. The futures market shows signs of rising optimism, with funding rates climbing 85% as traders speculate on a potential Trump victory, which could bode well for Ethereum ETFs.
ETH Price Chart, Source: Sanbase
However, weak institutional demand has limited ETH’s growth. Ethereum ETFs have struggled with inflows, especially compared to their Bitcoin counterparts, as institutions remain cautious. This lack of interest is exacerbated by significant outflows from the Grayscale Ethereum Trust since its inception.
With Ethereum’s price currently hovering near critical support levels, traders are closely watching for potential breakout opportunities, while the upcoming election may play a pivotal role in determining the market’s direction.
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