The value of Ethereum (ETH) has recently faced a substantial downturn as significant holders of the cryptocurrency have initiated transfers of their assets to various exchanges. This trend has led to Ethereum’s value against Bitcoin (BTC) plummeting to its lowest level in 14 months, with the ETH-BTC ratio hovering around 0.0602, a level not seen since July of the previous year. This extended slide has reinforced the bearish outlook held by market analysts regarding Ethereum’s performance in comparison to Bitcoin. Prominent figures in the crypto sphere, such as Marcus Thielen, Head of Strategy and Research at Matrixport, and crypto analyst Benjamin Cowen, have both expressed the belief that Bitcoin is poised to continue its dominance over altcoins, including Ethereum.
Of particular note is the recent movement of substantial Ethereum holdings by large token holders, often colloquially referred to as “whales,” to various cryptocurrency exchanges. One such notable transaction involves Ethereum co-founder Vitalik Buterin, who transferred 300 ETH, valued at approximately $493,000, to Kraken on Tuesday. This move has sparked speculation that Buterin may be contemplating the sale of a portion of his Ethereum holdings. Additionally, another substantial holder has deposited a total of 30,000 ETH, worth nearly $50 million, across multiple crypto exchanges, including Binance, OKX, and KuCoin, within the past four days.
These significant shifts in Ethereum holdings have prompted concerns among investors, who interpret these actions as a possible indication that these whales are positioning themselves for an impending bearish market phase by divesting their Ethereum assets. Despite these apprehensions, some investors remain optimistic, anticipating positive developments on the horizon, such as the potential approval of an Ethereum futures Exchange-Traded Fund (ETF) in mid-October. Notably, following the approval of a Bitcoin futures ETF by the U.S. Securities and Exchange Commission (SEC) in 2021, Bitcoin witnessed a remarkable rally of over 60 percent. Consequently, some experts speculate that Ethereum could follow a similar trajectory if such an ETF is greenlit.
Presently, Ethereum is trading at $1,630, reflecting a minor decrease of less than 1 percent within the past 24 hours. This marks a substantial decline of over 65 percent from its all-time high of $4,878, which was achieved nearly two years ago.
