Ethereum Drops as Institutions Sell, Spot Traders Buy
Key Takeaways
Ethereum (ETH) is currently experiencing strong selling pressure from institutional investors. At the same time, spot traders continue to buy ETH, which could indicate a potential trend reversal. The ETH reserves on exchanges might serve as an indicator for future price movements.
Institutional Investors Selling Massively
Over the past week, institutional investors have offloaded large amounts of Ethereum. Exchange-Traded Funds (ETFs) from companies like BlackRock and Fidelity have recorded significant outflows. Since February 24, approximately $293 million worth of ETH ETFs have been sold.
This selling pressure has led to a significant price drop. Within just 24 hours, the ETH price fell by 10.41%, and over the past month, it has declined by 33.10%. According to data from Coinbase, the price dropped from $2,821.64 to $2,103.84.
Spot Traders Buying Despite Price Decline
While institutional investors are selling, spot traders remain optimistic. Between February 24 and 28, ETH worth $864 million was purchased. Notably, despite a 10% price drop in a single day, spot traders acquired ETH worth $241 million – the second-highest buying activity of the week.
These purchases are primarily coming from retail investors. Large investors, who typically control a significant portion of the supply, have continued to sell. According to data from IntoTheBlock, an additional 114,850 ETH have been offloaded by major investors since February 25.
Exchange Reserves as an Indicator
An important factor for future price development is the amount of ETH held on crypto exchanges. According to data from CryptoQuant, the current reserve stands at 18.9 million ETH.
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Declining reserves suggest that less ETH is available for sale, which could support a price increase. If this trend continues, ETH could stabilize or even begin to recover.
Our Assessment
The current market situation reveals a clear tension between institutional and retail investors. While large market participants continue to sell, spot traders are supporting the price through high purchasing activity.
Whether ETH recovers in the coming weeks will largely depend on the further development of exchange reserves. If these continue to decline, it could signal an impending price increase. Otherwise, selling pressure may persist and further weigh on ETH.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $2,228.35 |
| 24h % | -2.65 % |
| 7d % | -16.75 % |
| 30d % | -28.70 % |
| 60d % | -34.37 % |
| 1y % | -32.99 % |
| Market Cap | $268,709,261,462.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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