- Lookonchain data indicates that on Wednesday, nine spot Ethereum ETFs saw inflows of 44,447 ETH, valued at $110.1 million.
- Santiment's data shows that dormant wallets are active, signaling a renewed interest and activity.
- Santiment's Network Realized Profit/Loss data shows capitulation events from August 3 to August 5.
- Investors should be cautious about decreasing Development Activity.
Ethereum (ETH) price retested its weekly support on Monday and, by Thursday, had risen by 4.50% to $2,454. Lookonchain data shows that Ethereum Spot ETFs saw inflows of 44,447 ETH, valued at $110.1 million, on Wednesday, while Santiment's data highlights increased activity in dormant wallets and recent capitulation events, indicating a potential upcoming rally.
Ethereum on-chain data display bullish lean
Lookonchain data indicates that nine spot Ethereum ETFs saw inflows of 44,447 ETH, valued at $110.1 million, on Wednesday, marking two consecutive days of net inflows this week. This trend underscores the importance of monitoring these ETFs' net flow data to grasp market dynamics and investor sentiment, while their total Ethereum reserves amount to $7.04 billion.
9 #Ethereum ETFs inflows 44,447 $ETH($110.1M), 2 consecutive days of net inflows!
— Lookonchain (@lookonchain) August 7, 2024
Aug 7 Update:
10 #Bitcoin ETFs
NetFlow: -1,899 $BTC(-$109.14)#Fidelity outflows 1,137 $BTC($65.33M) and currently holds 175,858 $BTC($10.11B).
9 #Ethereum ETFs
NetFlow: +44,447… pic.twitter.com/foD2PvmxJy
Santiment's data shows that the transfer of 789,533 ETH from dormant wallets signals a renewed interest and activity in the Ethereum ecosystem, which can be interpreted as a bullish indicator suggesting that major holders are becoming more active in the market.
%20[08.04.54,%2008%20Aug,%202024]-638586860021685820.png)
Ethereum Age Consumed chart
On-chain data provider Santiment's Network Realized Profit/Loss (NPL) indicator computes a daily network-level Return On Investment (ROI) based on the coin's on-chain transaction volume. Simply put, it is used to measure market pain. Strong spikes in a coin's NPL indicate that its holders are, on average, selling their holdings at a significant profit. On the other hand, strong dips imply that the coin's holders are, on average, realizing losses, suggesting panic sell-offs and investor capitulation.
In ETH's case, the NPL indicator dipped from -37.32 million to -909.64 million from August 03 to August 5, coinciding with a 19% price crash. This negative downtick indicates that the holders were, on average, realizing losses, suggesting panic sell-offs and investor capitulation.
%20[08.09.00,%2008%20Aug,%202024]-638586860524752677.png)
Ethereum Network Realized Profit/Loss chart
Despite increased activity in Ethereum's dormant wallets, recent capitulation events, and consecutive inflows into spot ETFs, ETH development activity still needs to be higher, suggesting that investors should not anticipate an immediate price rally for the token.
%20[08.47.25,%2008%20Aug,%202024]-638586860978009853.png)
Ethereum Development Activity chart
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
Editors’ Picks
Michael Saylor predicts Bitcoin to surge to $100K by year-end
MicroStrategy's executive chairman, Michael Saylor, predicts Bitcoin will hit $100,000 by the end of 2024, calling the United States (US) election outcome the most significant event for Bitcoin in the last four years.
Ripple surges to new 2024 high on XRP Robinhood listing, Gensler departure talk
Ripple price rallies almost 6% on Friday, extending the 12% increase seen on Thursday, following Robinhood’s listing of XRP on its exchange. XRP reacts positively to recent speculation about Chair Gary Gensler leaving the US Securities and Exchange Commission.
Bitcoin Weekly Forecast: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin (BTC) surged up to 16% in the first half of the week, reaching a new all-time high of $93,265, followed by a slight decline in the latter half. Reports suggest the continuation of the ongoing rally as they highlight that the current trading level is still not overvalued and that project targets are above $100K in the coming weeks.
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.