What happened?
Ethereum’s price has been declining since it hit its all-time high at $4,934. Despite this, the setup still looks bullish as institutions continue to buy ETH and remove it from exchanges. BitMine made a significant move, purchasing over $1B worth of ETH last week, making them the largest corporate ETH holder worldwide. Nevertheless, the price dropped more than 5%, slipping from above $4,400 to under $4,200.
Who does this affect?
The ongoing fluctuations in Ethereum’s price affect traders and entities that have invested in the cryptocurrency. They also impact corporations like BitMine that hold substantial amounts of ETH. According to Glassnode data, ETH addresses in profit are hitting an all-time high, suggesting that whales (large holders of a cryptocurrency) are cashing out at historic gain levels.
Why does this matter?
The market impact of these movements can be significant. For instance, if Ethereum manages to rebound to $4,500 this week, shorts worth around $4.4B could get wiped out. If it recovers above $4,900, that figure could approach $10B. This imbalance shows that more traders are betting against Ethereum than on it, and a bit of positive news or a sharp upward move could trigger a significant rally. These dynamics underscore the volatility and speculative nature of the cryptocurrency market.