Ethereum (ETH) is struggling to maintain momentum as it faces significant selling pressure from institutional investors. Despite a recent recovery, where ETH surged over 5% in the past week, the cryptocurrency remains approximately 20% down over the last 90 days. This mixed performance presents challenges and opportunities for investors navigating the current market dynamics.
Cumberland and para fi capital make significant moves
Recent data from Lookonchain reveals that prominent institutions, Cumberland and ParaFi Capital, are actively offloading substantial amounts of Ether. Cumberland transferred 11,800 ETH, valued at around $31.88 million, into Coinbase.
This transaction marks one of Cumberland’s most significant sell-offs. On August 26, Cumberland deposited 6,439 ETH worth about $17.66 million into Binance. Meanwhile, ParaFi Capital withdrew 5,134 ETH, valued at $13.83 million, from Lido and deposited it into Coinbase Prime. These actions reflect a strategic move to capitalize on ETH’s recent price surge while maximizing profit.
An ancient whale emerges from dormancy
In addition to institutional activity, an ancient Ethereum whale has re-entered the market after prolonged inactivity. According to data from Spot On Chain, this whale liquidated another 12,979 ETH for about $34.3 million this week, coinciding with ETH’s recent rebound.
After 4 months of silence, an ancient #Ethereum whale with a $58.8M profit cashed in another 12,979 $ETH for $34.3M this week, as $ETH rebounded ~6%!Originally withdrawing 21,632 $ETH from #ShapeShift and #Poloniex in 2016 at $7.074/ETH, the whale has sold 15,879 $ETH since… pic.twitter.com/JrtBinVnj6
— Spot On Chain (@spotonchain) September 28, 2024
The whale, previously silent for four months, had withdrawn 21,623 ETH from ShapeShift and Poloniex in 2016 when ETH was priced at $7.074. Since May, this whale has sold over 15,500 ETH, generating approximately $43.5 million at an average selling price of $2,739. Currently, the whale retains a balance of 5,760 ETH.
Ether ETFs experience positive inflows
Ether is trading near the crucial $2,600 price level, reflecting a modest 4.8% increase over the past month. However, the cryptocurrency’s 24-hour trading volume has decreased by 7%, at $15.99 billion. In a noteworthy turnaround, Ether exchange-traded funds (ETFs) have seen inflows surpassing $84 million this week, reversing several weeks of outflows.
On a single day, inflows reached approximately $58 million, with Fidelity’s FETH leading the charge by bringing in $42.5 million. Following closely, BlackRock’s ETHA saw inflows of $11.5 million, while Grayscale’s ETHE experienced outflows of $10.7 million. Earlier this week, Ether ETFs had recorded outflows of $80 million, primarily from Grayscale’s ETHE, but BlackRock’s renewed interest has shifted the trend back toward positive territory.
As Ethereum navigates these complex market conditions, the actions of institutional players and individual investors will play a pivotal role in determining its future trajectory. The juxtaposition of significant sell-offs and renewed institutional interest underscores the cryptocurrency market’s volatility, leaving investors to assess their strategies in light of ongoing developments.
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