The launch of Spot Ethereum Exchange-Traded Funds (ETFs) has been highly anticipated by the cryptocurrency community, but the expected price boost for Ethereum has yet to materialize. In fact, some analysts are suggesting that the launch of these ETFs has turned out to be a “sell the news” event, as Ethereum’s price recently experienced a significant decline, dropping to $3,100 from a high of $3,500 earlier in the week.
Despite this price drop, on-chain data is providing an interesting insight into the market. There has been a surge in activity among Ethereum whales, with a significant increase in the volume of large transactions being observed. According to data from IntoTheBlock, whales moved a substantial 3.50 million ETH within a 24-hour period on July 24, marking the highest volume of large transactions since the launch of Spot Ethereum ETFs.
The large transaction metric tracks transactions exceeding $100,000, categorizing them as whale movements. This data indicates a continuation of whale activity, with a consecutive monthly high of 3.68 million ETH being recorded on July 25. Whale_Alerts, a whale transaction tracker, has also posted alerts on significant ETH transactions on social media, suggesting both outflows into exchanges and accumulation events.
A closer look at other on-chain metrics reveals a combination of inflows and outflows from large wallets. Inflows have increased by 12.42% over a seven-day period, while outflows have surged by 38.17% within the same timeframe. The net flows over the last seven days show a negative 100.65%, indicating that outflows have significantly surpassed inflows.
Despite the current dominance of outflows, bullish whales continue to accumulate ETH from exchanges, showing confidence in the long-term potential of Ethereum. On the other hand, Spot Ethereum ETFs have been experiencing significant activity, with substantial inflows recorded. However, these inflows have been offset by outflows from the Grayscale Ethereum Trust ETF (ETHE), which have exceeded $1.5 billion.
As of the latest update, Ethereum is trading at $3,210, reflecting a 1.5% decrease over the past 24 hours. The market remains dynamic, with whale activity and ETF movements shaping the price action of Ethereum in the coming days. Investors and traders will be closely monitoring these developments to gauge the future direction of the cryptocurrency.