Ethereum slips below $3,100 as whales diverge on buy-sell strategy
Ethereum whales return, buying 18K ETH
Ether ETFs, which launched in July, have been showing positive net flows within five consecutive days and the cumulative figures are now $94.62 million and still rising.
When drawing a comparison to Bitcoin ETFs which saw significant demand in its early phases, it is clear that Ethereum ETFs struggled to gain traction.
However, Ethereum has now attracted $650 million in inflows in November alone which is telling of renewed institutional interest. This contrasts sharply with the earlier lukewarm reception that stemmed from Ethereum’s muted price action between August and October and the absence of staking features within its ETF funds.
Ethereum whales return to accumulation
Adding to the narrative, whale activity in Ethereum continues to grow. A newly active wallet has purchased over 18,000 ETH, valued at $57.8 million, at an average price of $3,201. This wallet which holds only Ethereum and $19.3 million in Tether, appears ready to seize further buying opportunities if prices dip. It is worth noting that this is a significant turnaround from Q3, during which whales aggressively offloaded ETH into the market. In Q4, Ethereum prices have now risen by 23% and this aligns whales recent activities.
But then, there's something more conflicting. While new whales are buying, early Ethereum investors are taking profits. A notable example is a 2016 ICO participant who recently liquidated 11,000 ETH for a staggering 80,000% return on their $38,000 investment. Similarly, another whale from 2017-2018 sold 6,250 ETH, worth $20 million, on Kraken this week.
This profit-taking move has coincided with Ethereum's recent price peak at $3,440. After breaking past $3,000 last week with a 29% gain, ETH’s momentum has slowed, recording only a 0.66% rise since November 11. Ethereum has now declined 12% in three consecutive days from its recent peak, breaking below the $3,100 support level, and it is now trading near the 3000 key psychological level.
Earlier this week, Ethereum price extended its gains through $3,400 after finding support at the $3,100 level. Its ETF inflows correspondingly hit net positive for the first time.
