• Ethereum whales and major players are accumulating ETH despite recent decline.
  • Grayscale's mini Ethereum trust could send shockwaves across the US crypto ETF market.
  • Ethereum could resume month-long movement in key range.

Ethereum's price (ETH) is down nearly 6% on Monday after Mt. Gox announced it would begin repaying creditors their Bitcoin and Bitcoin Cash. However, ETH whales have pounced on the price decline as an opportunity to purchase ETH before the arrival of spot Ethereum ETFs.

Daily digest market movers: Whales create buying pressure

Following news of the defunct exchange Mt.Gox beginning the transfer of Bitcoin and Bitcoin Cash to affected users in July, several Ethereum enthusiasts campaigned for investors to buy/hold ETH. Spot On Chain data reveals that several whales and major players, including Tron Founder Justin Sun, accumulated ETH despite the recent dip. This may be due to bullish sentiment around the potential launch of spot ETH ETFs on July 2.

Meanwhile, according to Nate Geraci, President of the ETF Store, the unveiling of Grayscale's mini ETH trust fees "could send shockwaves through the spot BTC ETF landscape," considering the company also has a mini BTC trust in the works. Many expect the mini ETH trust to have a very low fee below those of other ETH ETF issuers, as it was rumored that Grayscale's mini BTC trust fees would be 0.15%, which would make it the cheapest product in the US crypto ETF landscape.

Also read: Ethereum ETF issuers launch marketing campaign with slight dig at TradFi

Additionally, Roundhill Ball Metaverse ETF (METV) disclosed it now has 6.8% exposure — worth $27 million — to the Canadian-based CI Galaxy spot ETH ETF after a quarterly rebalance of its index. According to its press release, this is the largest Ethereum exposure for a US-based ETF.

ETH technical analysis: Ethereum could resume consolidation in key range

Ethereum is trading around $3,280 on Monday after FUD from Mt.Gox sparked a selling spree across the general crypto market. Ethereum may be heavily affected despite ETH ETFs on the horizon due to Bitcoin's dominance over the crypto market. Ethereum liquidations crossed $72 million, with long liquidations reaching $63 million and shorts at about $9 million.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

Read more: Ethereum ETFs may not cause upward surge in ETH price as many expect

ETH breached the key support level of $3,300, entering a key range extending from $2,852 to $3,300. Notably, ETH traded inside this range for over a month after descending from its yearly high of $4,093 in March. A further decline below the 3,029 support level could see ETH sustaining another month-long move inside the key range.

However, on the other hand, the arrival of ETH ETFs could command buying pressure, boosting Ethereum above the $4,093 resistance.

Ethereum development FAQs

After the Merge, the Ethereum community is looking at the Sharding upgrade next, which has been slated for sometime later in the year. The development can be summarized in four words, “scalability through more efficient data storage.” The software update will increase the capacity of the blockchain, widening the amount of data that can be stored or accessed. At the same time, all services running atop the Ethereum blockchain will enjoy significantly reduced transaction fees.

A fork is the splitting of a blockchain after developers agree and proceed to implement upgrades. The decision comes after these developers reach a consensus for a software upgrade. The ensuing part will see one part continue with the status as is, while the other one will proceed with new features combined with the former ones. A hard fork basically entails permanent divergence of a new side chain from the original one, while a soft fork is doing the same, only difference being that it is temporary.

EIP-4844 is an improvement proposal for the Ethereum network. The upgrade promises reduced gas fees, which is a valuable offering considering the high transaction cost that continues to daunt crypto players. It has been a long-standing concern for the Ethereum network. The proposal is also referred to as “proto-Danksharding,” with an unmatched ability to increase the speed of transactions on the Ethereum blockchain. At the same time, it helps to reduce the transaction cost as everything becomes decentralized.

Gas token is a new, innovative Ethereum contract where users can tokenize gas on the Ethereum network. This means they can store gas when it is cheap and start to deploy the gas once the market has shifted to the north. The use of Gas token helps to subsidize high gas prices on transactions, meaning investors can do everything from arbitraging decentralized exchanges to buying into initial coin offerings (ICOs) early.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Polygon joins forces with WSPN to expand stablecoin adoption

Polygon joins forces with WSPN to expand stablecoin adoption

WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.

More Cryptocurrencies News
Coinbase envisages listing of more meme coins amid regulatory optimism

Coinbase envisages listing of more meme coins amid regulatory optimism

Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.

More Crypto News
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B

As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin: Rally expected to continue as BTC nears $100K

Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week. 

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP