Ether to face more selling pressure, whale caught moving $121 mln of ETH
Ethereum, the biggest altcoin, is dealing with increased selling pressure as the crypto market suffers a major correction after the approval of the spot crypto exchange traded funds (ETF). Ethereum price recorded a drop of more than 7% over the past 7 days after enjoying a much anticipated relief rally.
Can Ethereum sustain this selling pressure?
As Ethereum deals with selling pressure, crypto whales seem to be dumping ETH on different crypto exchanges.
Data provided by WhaleAlert depicts that the biggest of the crypto whale wallets moved around 50,000 Ether (approx worth $121 million) on two of the largest exchanges. More than 26,500 ETH tokens (approx worth $66 million) were moved from a whale wallet to the crypto exchange Coinbase.
The biggest transaction recorded by the tracker has been of moving 22,425 ETH tokens (approx worth $55 million) from a whale wallet to the crypto exchange Binance.
Ethereum price is down around 2% in the last 24 hours. ETH is trading at an average price of $2,483, at the press time. Its 24 hour trading volume is up by 10% to stand at $11 billion. This comes in with a drop in the cumulative market cap.
The cumulative market cap is down by more than 2% over the past day. It now stands at $1.64 trillion. The 24 hour trading volume is up by 16% to stand at $64 billion. The total liquidations recorded by Coinglass stands at $233 million.
Ether ETF on the way?
It is important to note that there’s market optimism surrounding the potential approval of a spot Ethereum ETF by the SEC’s May 23 deadline for the Ark 21Shares application. However, traders eye ETH as the next candidate for a U.S. spot ETF following the Bitcoin BTC ETF trend.
JPMorgan notes the Grayscale Ethereum Trust’s (ETHE) discount to net asset value has been contracting, indicating anticipation. Some argue that the SEC’s omission of ETH in recent lawsuits implies a likely commodity classification, a prerequisite for spot ETF approval.
However, JPMorgan’s skepticism prevails, assigning no more than a 50% chance of SEC approval for a spot ETH ETF by May. ETH’s recent surge follows the BTC ETF approval, with potential ETF approval offering professional U.S. investors exposure to Ethereum without direct ownership. Despite Ethereum’s transition to proof-of-stake in 2022 impacting decentralization, it resembles other SEC-classified altcoins, raising uncertainties about the SEC’s stance on Ether as a commodity.