Crypto: Massive withdrawals signal a rise in the price of ether!
Ether is generating a new wave of enthusiasm as the launch of spot Ether ETFs approaches. Indeed, massive withdrawals of ETH from crypto exchanges have recently been observed. This phenomenon, coupled with the arrival of ETH ETFs, could signal the beginning of a significant bullish phase for the altcoin.
A historical accumulation of ether
The latest figures from Glassnode, shared by crypto analyst Leon Waidmann, show a significant acceleration in ether withdrawals from crypto exchanges. Over the past seven days, around $126 million worth of ETH has been withdrawn from these platforms. According to Waidmann, these withdrawals are generally a very positive indicator for prices. This phenomenon began in March 2024 but gained momentum in the third quarter of the year. The decrease in ETH reserves on exchanges occurred after the asset’s price reached a three-year high above $4,000. However, ETH has corrected over the last 24 hours. Currently, the altcoin is flirting with $3,500.
The increase in withdrawals coincides with the current crypto market climate and growing expectations around the launch of a spot Ether ETF. Investors seem to be withdrawing their funds to place them in private wallets. This maneuver could indicate anticipation of future gains and a desire to reduce exposure to exchange-associated risks.
Imminent launch of spot Ether ETFs
On July 20, 2024, the Chicago Board Options Exchange (CBOE) announced that the first spot Ether ETF would be launched on July 23, 2024. This event will mark a major milestone for ether-related financial products. According to Waidmann, “the launch of these ETFs could be a powerful bullish catalyst for ETH prices.”
Despite positive expectations, some experts are cautious. JP Morgan anticipates more moderate interest in these funds compared to the Bitcoin ETFs launched earlier in the year. JP Morgan’s analyst notes that “the enthusiasm for Ether ETFs may not reach the level observed for Bitcoin, due to slower adoption and persistent mistrust among investors.”
The strong accumulation of ETH and the imminent launch of ETFs could drive ETH prices to new heights. However, the caution of some experts indicates that the real impact on the market remains uncertain. Investors will need to stay vigilant to determine if counteracting factors might influence this trend.
