Ethereum Faces Pressure as ETF Holdings Shift; Whales Buy the Dip
Ethereum (ETH) Price Reacts to ETF Activity and Whale Accumulation
Ethereum (ETH) experienced price volatility as shifts in ETF holdings and substantial whale purchases influenced market dynamics. While some funds reduced their ETH exposure, large individual investors stepped in to buy the dip.
ETF Outflows Weigh on ETH Price
The price of Ethereum saw downward pressure as certain major funds adjusted their positions. Collectively, these funds saw outflows of $167 million. Data indicated specific movements:
- One fund reduced its Ethereum holdings by $216.8 million.
- Another saw outflows of $26.4 million.
- A third withdrew $17.2 million.
BlackRock Inflows Provide Counterbalance
Offsetting some of the selling pressure, BlackRock's iShares Ethereum Trust saw inflows of $148.8 million, bringing its total assets above $13 billion. On-chain data confirmed ETH transfers into custody accounts linked to BlackRock.
Whale Wallets Accumulate $230M in ETH
Despite the ETF-related price pressures, significant buying activity from large individual investors emerged. Three new Ethereum whale addresses acquired nearly $230 million worth of ETH in a single day. These acquisitions were executed through FalconX and BitGo.
The whale wallets now hold substantial ETH balances, with each containing between 10,000 to 18,000 ETH. This suggests renewed institutional interest in ETH despite the ETF adjustments.
Macro Factors and Long-Term Outlook
Broader economic data also played a role. U.S. jobs data came in below expectations, leading to a Bitcoin price surge as traders anticipated potential Fed rate cuts. Ethereum, however, lagged behind Bitcoin's gains, with the ETF redemptions overshadowing the favorable macro context.
Despite short-term price fluctuations, Ethereum remains up 18.8% this month and 94.7% over six months. Year-to-date, ETH has increased by 28.8%, and by 75% over the past twelve months, reflecting underlying strength.