Similar questions were asked after the Bitcoin ETF listing, even during the halving excitement. Cryptocurrencies are more unpredictable than other markets and their prices are shaped by many factors. We can even see movements contrary to the direction influenced by speculative traders. So, what is the current situation for Ether?
Why Isn’t Ethereum Rising?
At the time of writing, the price is around $3,166 and BTC still hasn’t reclaimed the $65,000 support. ETF volume was quite good for the first two days, easily surpassing $500 million today. However, Ether whales prefer to sell. Over 840,000 ETH changed hands in sales that have been ongoing for the last two weeks. The source of the sales is the group holding between 10,000 and 100,000 ETH.
Historically, prices fall during periods when whales sell intensively. They preferred to sell due to concerns about a post-launch drop. Whales, who did not want to take the risk of uncertainty after the ETF listing, now found buying opportunities at lower levels.
Individual investors do not think differently. The increase in the realized profit metric is at the highest level of the last 1.5 months. Sales worth $747 million took place on the day before the launch.
Ethereum Predictions
With billions of dollars in Gox returns, German sales, and over 200,000 BTC held by the US, the crypto markets are actually getting rid of a long-term big trouble in the short term. Markus Thielen, Founder and CEO of 10x Research Ltd, said the following;
“As we showed on Tuesday, the stochastic indicator was at the top of the range, suggesting a peak might be forming. A reading above 90 is often associated with a correction, while a level below 15 indicates low levels to buy. With the current value of 87 (down from 92), Ethereum seems to be moving towards a lower level.
The view of buying Bitcoin in a bullish scenario and shorting Ethereum in a bearish scenario continues. Given the recent rally and potential bump from Mt Gox, the US earnings season, and weak seasonality for August and September, it might make sense to short Ethereum a bit longer.”
If the decline continues, a close below $3,118 could test the $3,000 level. ETHE has experienced an outflow of over $800 million since the launch day, and this could continue strongly for a while.
