- The cryptocurrency market has rebounded strongly, with Ethereum (ETH) prices surging by 5%, crossing the $3,500 mark.
- This uptick is attributed to heightened whale activity as investors anticipate the launch of the spot Ethereum ETF on July 8.
- According to Spot on Chain, a significant whale known as Abraxas Capital recently withdrew 60,000 ETH, amounting to $203 million, from Bitfinex.
The Ethereum price surge comes amid increasing whale activity and anticipation of the upcoming spot Ethereum ETF, marking a bullish turn for the crypto market.
Total Whale Activity Spurs Ethereum Price Rally
Ethereum’s price saw a notable increase of 5%, reaching above $3,500. This movement follows substantial activity from prominent Ethereum whales, with a significant withdrawal reported by Spot on Chain. Abraxas Capital pulled out 60,000 ETH from the crypto exchange Bitfinex, which was valued at $203 million. This maneuver has led to a 4% price rally, giving the whale an unrealized profit of approximately $6.5 million.
Whale Strategies Impacting the Market
The whale activity didn’t stop at the withdrawal. The acquired Ethereum was lent to the DeFi lending platform Spark in exchange for $119 million in stablecoins, which were subsequently deposited to Binance. This action likely bolstered ETH’s daily trading volume by 50%, reaching $9.8 billion, further influencing the market sentiment and driving the price up. With Ethereum now trading at $3,499, the market capitalization stands robust at $420.7 billion.
Ethereum ETF Launch on the Horizon
The forthcoming spot Ethereum ETF launch, scheduled for July 8, has heightened market excitement. This development has led many investors to shift their focus to Ethereum. For instance, a substantial PEPE whale exchanged $18 million worth of PEPE coins to Ethereum, expecting the asset to perform well amid ETF anticipation.
Regulatory Adjustments and Investor Sentiment
Despite a brief delay in the launch originally slated for July 4, the U.S. Securities and Exchange Commission (SEC) has provided positive indications. Issuers were requested to resubmit their S-1 forms with minor revisions by July 8. ETF Store President Nate Geraci opines that the regulators might greenlight trading within the next 14-21 days post-resubmission. Geraci predicts the spot Ethereum ETF could become the second most successful launch in ETF history, following the spot Bitcoin ETFs. The anticipation is likely to keep investor interest piqued, potentially sustaining Ethereum’s bullish momentum.
Conclusion
The Ethereum market is on an upswing, driven by heavy whale activity and the upcoming spot Ethereum ETF. The broader expectation among investors is that these factors will propel Ethereum to greater heights. While regulatory delays have caused minor setbacks, they have not dampened investor enthusiasm significantly. Should Ethereum maintain its current trajectory and secure a daily close above $3,500, it could aim for the next psychological milestone of $4,000.
