Invest.com – Twelve cryptocurrency wallets bought 156,733 Coinbase (NASDAQ:) in the last few hours, valued at approximately $574 million. This transaction was completed at an average price of $3,664 per Ethereum.
However, despite these purchases, Ethereum price is struggling amid the corrections that have hit the broader crypto market.
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Will Ethereum Price Fall by 7%?
According to data from analytics platform Spot On Chain, 11 of the 12 cryptocurrency wallets withdrew around 13,059 Ethereum. Notably, one of the wallets, 0xdfa, withdrew a slightly larger amount, 13,084 Ethereum.
Meanwhile, the supply of Ethereum on cryptocurrency exchanges has decreased significantly, reaching its lowest level in seven years, as reported by blockchain data from Glassnode. Lark Davis, an experienced cryptocurrency investor, highlighted this trend.
“Ethereum supply on exchanges is at its lowest level in 7 years and the price of Ethereum could rise significantly as a result.”
At the same time, the crypto community is excited about the recent approval by the US Securities and Exchange Commission (SEC) for Ethereum ETFs. This development is a crucial development for the cryptocurrency market as it opens the door to significant potential investments, mirroring the initial success seen with ETFs.
Meanwhile, prominent cryptocurrency researcher Bobby Banzai predicts monthly inflows of $569 million into Ethereum ETFs. His predictions are based on the performance of international ETFs and futures data from the Chicago Mercantile Exchange.
Despite these positive developments and market optimism, the immediate impact on Ethereum price has been unfavorable. Following these large purchases, the price of Ethereum has fallen 4.91% in the last 24 hours and is currently trading around $3,494.18. Spot On Chain attributed this to the possibility that the new wallets' transactions are part of over-the-counter (OTC) deals, which do not directly affect the market price. The data analytics platform's forecast indicates cautious short-term expectations for Ethereum, predicting a possible 7% correction from the current market price.
However, Ethereum faced challenges this Tuesday as the digital currency market saw a price correction. If this downtrend continues, Ethereum's next support level could be at $3,302.
In the last 24 hours, it is down about 3%, down about 7%, and down about 7%.
