Ethereum [$ETH] collapsed to a low of $2356 following the failure of the CLARITY Act in the US Senate. This drop, however, turned short-lived as the market responded positively after the Fed rate hike.
As a result, Ethereum reclaimed $2.4k and touched $2444. With $ETH rebounding from a $2.3k slip, high net worth investors, especially whales, have started to accumulate.
Ethereum whales continue to accumulate
With $2.4k proving to be a strong support level, whales are buying the recent slip. AMBCrypto earlier reported that whales purchased $100 million worth of $ETH as the altcoin signaled a rebound.
This accumulation spree has continued at press time. Lookonchain reported that a newly created wallet withdrew 2,695 $ETH worth $6.94 million from Gemini and staked it all.
At the same time, another whale returned after nine months of inactivity and withdrew 2,500 $ETH worth $6.02M from Binance. These two whales purchased 5195 $ETH worth approximately $12.9 million.
Exchange activity also benefited from this renewed accumulation.
After jumping to 64.3k $ETH the previous day, Ethereum’s netflow plummeted. At press time, though, netflow was around -32.5k $ETH, implying that more tokens had left exchanges.
The strong exchange outflows, especially from whales as the asset attempts a recovery, imply these investors expect a sustained upward movement.
Institutions sell post rate hikes
Interestingly, institutional investors have shown skepticism and still continue to sell. This market behavior has been openly exhibited by the Ethereum Spot ETFs.
For starters, Onchain Lens reported that Bitwise sold 14.3K $ETH worth $34.21 million. This marked the first outflow from Bitwise since late July, a clear sign of a strong market shift in sentiment.
In fact, Ethereum Spot ETFs recorded outflows for two consecutive days after more than a month.
Over the past days $ETH ETFs recorded -$224 million in outflows, marking the highest outflows since January. The increased outflows from these funds suggest that institutional investors are bearish and fearful of another slip.
What’s next for $ETH now?
The major challenge facing Ethereum now is institutional bearishness during periods of weakness and indifference during stability.
Although whales are buying, their capital inflow remains inadequate compared to outflows from institutional investors. Therefore, for the market to respond strongly to the upside especially, an institutional sentiment shift remains critical.
For example, when they had started accumulating days ago, $ETH rose to $2.6k. Thus, if whales resume buying and reduce selling-side activity, Ethereum will reclaim $2.5k and set another path for a major upside move.
Final Summary
- Two Ethereum whales purchased 5195 $ETH worth approximately $12.9 million.
- Bitwise ETF sold 14.3K $ETH worth $34.21 million as ETF outflows hit $224 million.