Thursday, May 23, 2024

Ethereum Price Eyes Rebound as Whales Accumulate for Staking Boom.

On Thursday, whales went on a purchasing binge, and Ethereum (ETH) momentarily reached $3,618 as it appeared to be regaining its bullish momentum. The US Securities and Exchange Commission’s (SEC) Wells notice to Uniswap may have long-term effects on Ethereum, even in light of whale movement.

Everyday roundup of market movers: Wells notice, Bitcoin correlation, and whale accumulation

After two days of sustained bearish trading, Ethereum, along with several other altcoins, saw positive trade on Thursday. For the largest blockchain with smart contracts, these are your major marketmovers:

  • According to onchain insights from Spot On Chain, following ETH’s modest gain on Thursday, big ETH whale Ox347 deposited 9000 ETH tokens to Binance for $3,560 in an attempt to book profits. Even though this is the whale’s biggest ETH deposit yet, 29,738 ETH worth a whopping $106 million with an estimated profit of $68.5 million are still held in its address.
  • Onchain data from Lookonchain suggests that some other whales are acting in opposition to whale Ox347’s profit-taking:
  • Whale 0x4359 removed a further 3,092 ETH ($11.12 million) from Binance on Thursday. On Wednesday, at the bottom of the price collapse, he had purchased 10,309 ETH ($35.82 million). Thus, in the last three days, he has taken out a total of 24,044 ETH ($86.5 million) from Binance.
  • Thursday saw the removal of 22,251 ETH ($80.06 million) by another whale, 0xACc7, bringing their total withdrawals from exchanges over the previous three days to 33,925 ETH ($122.06 million).
  • The whales’ latest move, according to some in the cryptocurrency world, might have been made to take advantage of the restaking boom that’s gaining steam in DeFi, particularly with the Mainnet introduction of EigenLayer. This is confirmed by Lookonchain data, which shows that institutions and whales withdrew Ethereum from Binance and staked it in Pendle and Bedrock.
  • Ethereum and Bitcoin (BTC) continue to have a strong link, despite the possibility that other factors are also at play. Since the start of the year, Ethereum’s price trend has mainly followed that of Bitcoin, along with a number of other large-cap altcoins. Therefore, the Bitcoin halving, which is in less than eight days, may be a major factor in ETH’s price fluctuation in the days to come.
  • Uniswap, the biggest decentralised Ethereum exchange, received a Wells notice from the US Securities and Exchange Commission (SEC) on Wednesday. The SEC’s formal notice of intent to sue a person or company, known as the Wells notice, was sent out in response to allegations that Uniswap was acting as an unregistered securities exchange and broker.

Legal action by the SEC against Uniswap might have a big impact on the DeFi market as a whole. This would have a significant impact on Ethereum, the platform that underpins about 80% of DeFi systems. Three companies that made transactions with the Ethereum Foundation were served with subpoenas by the SEC earlier in March. The SEC wants to categorise Ethereum as a security, according to a number of people in the cryptocurrency industry.

Technical analysis: ETH might keep moving sideways.

After recovering from the one-week slump that followed the peak of $4,094 on March 11, the price of ETH has been moving in a sideways trend. When ETH touched the crucial resistance level of $3,730 on Monday, traders anticipated a surge back to the $4,094 high, but instead the price declined. The horizontal trend that has persisted suggests traders are being cautious and unsure about whether to go long or short.

This hesitation is confirmed by the frequent fluctuation over the last two weeks between rising long and short liquidations. Until significant events like the Bitcoin halving and the SEC’s decision to approve a spot ETH ETF occur, ETH might keep moving sideways. But if the price breaches the important supports of $3,210 and $3,056, which were made on April 5 and March 20, respectively, a bearish trend might start.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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