Despite investors pulling $574 million worth of 156,733 ETH out of Coinbase, the price of Ethereum continues to suffer.
The supply of Ethereum (ETH) on cryptocurrency exchanges strikes a seven-year low, and the impending launch of Ethereum exchange-traded funds (ETFs) may trigger a supply shock.
A total of twelve new cryptocurrency wallets pulled 156,733 Ethereum (ETH) from Coinbase, which is equivalent to almost $574 million. The average price per Ethereum token was $3,664 during this transaction.
Eleven out of the twelve cryptocurrency wallets withdrew a total of 13,059 ETH, according to data collected by the on-chain analytical tool Spot On Chain. It is worth mentioning that 0xdfa, a cryptocurrency wallet, withdrew a somewhat larger sum of 13,084 ETH.
Also, according to Glassnode’s on-chain analytics, the availability of Ethereum on cryptocurrency exchanges has dropped to a level not seen in seven years. An expert crypto investor, Lark Davis, explained this pattern.
Exchange-traded ether supply is at a seven-year low. A huge supply shock is going to happen soon because to Ethereum ETFs. Davis warned that this might cause the price of Ethereum to surge.
The recent approval of spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) has set the crypto world ablaze. The crypto market has made a significant step forward with this breakthrough. It mirrors the early success of Bitcoin ETFs and opens the door to possible large investments.
Famous cryptocurrency analyst Bobby Banzai projected $569 million in monthly investments for Ethereum exchange-traded funds. International exchange-traded funds (ETFs) and futures data from the Chicago Mercantile Exchange form the basis of his prediction.
The short-term effect on Ethereum’s price has been negative, even though these things have happened and the market is optimistic. Ethereum is now trading at roughly $3,600, down more than 4% from Monday’s highs due to the huge withdrawals.
Since the transactions from the new wallets did not have any direct impact on the market price, Spot On Chain speculated that they may have been part of OTC trades.
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