Ethereum (ETH) Analysis: Price Declines 14.65% Amid Whale Moves and ETF Approvals

Ethereum (ETH) is experiencing heightened market turbulence as its price dropped to $3,395.36, representing a 14.65% drop over the last seven days. 

With a 24-hour trading volume of $63.46 billion and a circulating supply of 120 million ETH, Ethereum’s market capitalization now stands at $403 billion.

The recent price action has triggered a series of notable whale movements and institutional activities.

Whale Transactions Signal Mixed Market Behavior

A prominent whale associated with Longling Capital has made bold moves, acquiring 6,000 ETH during the latest price dip. Since May 2023, this investor has purchased 75,400 ETH for $180.4 million at an average price of $2,392. 

By selling 50,800 ETH during the same period, the whale generated $172.08 million at an average price of $3,401. These recent purchases suggest continued confidence in Ethereum’s potential recovery.

A smart whale (likely related to #LonglingCapital) bought 6,000 $ETH after the price drop.

This whale is skilled at buying $ETH at low prices and selling at highs, with a total profit of $83M.

Since May 8, 2023, this whale bought 75,400 $ETH($180.4M) at an average price of… pic.twitter.com/OK0OS9U4ou

— Lookonchain (@lookonchain) December 19, 2024

Another whale moved 22,746 ETH, valued at $77.7 million, to Binance within five hours. Over the past two days, this address deposited 31,968 ETH, worth $122.3 million, into Binance. 

The ETH was reportedly used to secure stablecoins to repay debts on decentralized finance platforms Spark and Aave. This debt repayment activity reflects caution among large holders amidst the price volatility.

Institutional Fund Increases Ethereum Holdings

Donald Trump’s World Liberty Financial has taken advantage of Ethereum’s price decline, purchasing 722.2 ETH worth $2.5 million after the price dropped by 6%. 

This brings the fund’s total Ethereum holdings to 15,595 ETH, valued at $53.3 million. Since November 30, the fund has spent $32.5 million acquiring 8,827.2 ETH at an average price of $3,682. The fund’s purchases underline its interest in Ethereum despite the current downward trend.

Donald Trump’s World Liberty Financial (@worldlibertyfi) spent another 2.5M $USDT to buy 722.2 $ETH 2 hours ago, after the price dropped by ~6%!

Since November 30, this fund has spent $47.5M on 6 crypto assets: $ETH, $WBTC, $LINK, $AAVE, $ENA, and $ONDO (tweet 👇). Of this,… https://t.co/8v3pGVG8Hr pic.twitter.com/Ix3h8Y1hxc

— Spot On Chain (@spotonchain) December 20, 2024

World Liberty Financial’s broader investment strategy includes $47.5 million allocated to six crypto assets: ETH, WBTC, LINK, AAVE, ENA, and ONDO. Ethereum remains its largest single holding, reflecting its strategic importance in the portfolio.

ETF Approvals Signal New Opportunities

The U.S. Securities and Exchange Commission (SEC) has approved the Hashdex Nasdaq Crypto Index US ETF and the Franklin Crypto Index ETF, combining spot Bitcoin and Ethereum into a single investment product.

These ETFs aim to simplify investment in the two leading cryptocurrencies, making them more accessible for institutional and retail investors alike.

SEC has *approved* both the Hashdex Nasdaq Crypto Index US ETF & Franklin Crypto Index ETF…

Will initially hold both btc & eth. pic.twitter.com/5GUhhhXL7y

— Nate Geraci (@NateGeraci) December 19, 2024

The SEC’s decision marks a pivotal development for the crypto market, potentially attracting new investors and expanding Ethereum’s use case.

By blending Bitcoin and Ethereum in one offering, the ETFs may encourage further integration of crypto assets into traditional investment portfolios.

Ethereum’s Technical Indicators Reflect Continued Pressure

On the technical side, Ethereum’s price has fallen below key levels, including the middle Bollinger Band at $3,785, indicating bearish momentum. The MACD indicator shows a bearish crossover, with increasing downside momentum. 

Meanwhile, the RSI is at 41.30, signaling weakening buying strength without yet reaching oversold levels.

Ethereum may face further selling pressure in the near term, with $3,427 acting as immediate support. Traders and investors are closely watching the market for signs of a reversal or stabilization.

FAQs:

Why is Ethereum’s price dropping?

Ethereum has seen a 14.65% decline due to market volatility, whale movements, and debt repayments.

What are the new crypto ETFs approved by the SEC?

The SEC approved ETFs combining spot Bitcoin and Ethereum, making investment more accessible.

What is the role of whales in the recent Ethereum market activity?

Whales are actively buying and selling ETH, showing mixed sentiment and impacting short-term prices.