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Ethereum in demand as investors buy on dip By Investing.com
Investing.com – Twelve cryptocurrency wallets purchased 156,733 from Coinbase (NASDAQ:) in the last few hours, worth approximately $574 million. This transaction was completed at an average price of $3,664 for Ethereum.
However, despite these purchases, the price of Ethereum is struggling due to the corrections that have hit the cryptocurrency market in general.
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Will Ethereum Price Drop 7%?
According to data from analytics platform Spot On Chain, 11 of 12 cryptocurrency wallets withdrew approximately 13,059 Ethereum. In particular, one of the wallets – 0xdfa, withdrew a slightly higher amount, 13,084 Ethereum.
Meanwhile, the supply of Ethereum on cryptocurrency exchanges has significantly decreased, reaching its lowest level in seven years, as reported by blockchain data from Glassnode. Lark Davis, an experienced cryptocurrency investor, highlighted this trend.
“The supply of Ethereum on exchanges is at its lowest level in 7 years and, as a result, the price of Ethereum could increase significantly.”
At the same time, the crypto community is abuzz with the recent approval by the US Securities and Exchange Commission (SEC) for Ethereum ETFs. This development represents a crucial advance for the cryptocurrency market, as it opens the door to potentially significant investments, reflecting the initial success seen with ETFs.
Meanwhile, prominent cryptocurrency researcher Bobby Banzai expects monthly inflows of $569 million into Ethereum ETFs. His forecasts 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’s price was unfavorable. Following these large purchases, the price of Ethereum has fallen by 4.91% in the last 24 hours and is currently trading around $3,494.18. Spot On Chain attributed this to the possibility that transactions from the new wallets may be part of over-the-counter (OTC) trades, which do not directly impact the market price. The data analytics platform’s forecast indicates cautious short-term expectations for Ethereum, predicting a potential 7% correction to the current market price.
However, Ethereum faced challenges this Tuesday, with the digital currency market experiencing a price correction. If this downtrend continues, Ethereum’s next support level could be at $3,302.
In the last 24 hours it has decreased by about 3%, decreased by about 7% and decreased by about 7%.