Ethereum Whales Accumulate ETH in Anticipation of ETF Launch

• Ethereum ETF launch drives bullish momentum and whale accumulation.
• ETH targets $4,000, potentially reaching $5,000 by year-end.

The upcoming launch of spot Ether (ETH) exchange-traded funds (ETFs) in the U.S., expected next week, is projected to push ETH prices to new highs. Ethereum whales have been accumulating ETH in anticipation of the ETF launch. Wallets holding at least 0.1% of the total supply have shown a consistently positive net flow over the past month, with a notable surge as Ethereum bounced back from recent lows below $3,000. This trend suggests accumulation ahead of the anticipated ETF release around July 23rd.

The outlook for the coming week is predominantly bullish. However, whether the ETF release becomes a ‘sell the news’ event hinges on the level of institutional demand for ETH, according to IntotheBlock.

Meanwhile, Once approved, ETH could reach all-time highs above $5,000, Bitwise predicts. This may not happen immediately, and price action could be choppy initially due to money flowing out of the $11 billion Grayscale Ethereum Trust (ETHE) as it converts to an ETF, Bitwise chief investment officer Matt Hougan wrote in a report on Tuesday.

Hougan compared Bitcoin‘s previous 1.7% inflation rate to Ethereum’s, which has hovered from negative to 0% in the past year. ETH has maintained a deflationary status since the implementation of Ethereum Improvement Proposal 1559 (EIP-1559), which reduces the amount of ETH in circulation with every transaction on the Mainnet.

Ethereum Price And Its Whale Moments

In the past 24 hours, there have been significant whale transactions: 15,033 ETH ($52,547,026) transferred from an unknown wallet to Coinbase Institutional, 5,828 ETH ($20,343,795) transferred from Coinbase Institutional to an unknown wallet, and 6,000 ETH ($20,704,471) transferred from Bitfinex to an unknown wallet.

Ethereum hit a 16-day high of $3,517 with a 1.09% surge, though trading volume is down 4%. Over the past seven days, ETH is up 11% but currently faces selling pressure. The 9-day EMA at $3,302 confirms the bullish trend.

The $4,000 price level is eyed as the next target for Ethereum, supported by key levels around $3,650 and $3,800. Staying above these levels is crucial for maintaining the bullish trend, potentially pushing ETH to $4,200.

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