"ETH's Price Dance: Whales Stir, 1inch Fund Buys, Institutions Waver"

Generated by AI AgentCoin World
Tuesday, Feb 4, 2025 6:09 am ET1min read
ETH--

Ethereum's price trajectory has been a subject of intense scrutiny in recent weeks, with conflicting signals from various market participants creating a sense of uncertainty. One of the most notable developments has been the strategic accumulation of ETH by the 1inch Investment Fund, which has purchased a significant amount of the cryptocurrency in recent hours and days. The fund's bullish stance on ETH is a positive sign for the market, as it indicates that smart traders are confident in the asset's long-term prospects.

However, the recent activity of dormant whale wallets has raised concerns about a potential sell-off. Two wallets that had been inactive for six years suddenly moved a massive 135,548 ETH to Bitfinex just eight hours before the recent price crash. If these whales choose to sell their ETH, they could potentially harvest a colossal profit of $378.3 million, which could lead to a significant market downturn.

Adding to the uncertainty, Ethereum spot ETFs experienced a net outflow of $45.51 million last week, while Bitcoin spot ETFs enjoyed strong inflows. This situation has contributed to a narrative of flagging institutional demand for ETH, which could further impact the cryptocurrency's price trajectory.

As Ethereum stands at a crossroads, its price action reflects a market sentiment shaped by these conflicting signals. While the accumulation of ETH by smart traders like 1inch hints at a price path that leads up and away from the SEC, the relatively flat price and dormant whale activity suggest a different path. Investors and traders are now fixated on whether Ethereum will finally break free from its pattern of unsuccessful rallies or if the ongoing cycle will continue to defy historical trends.

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