Ethereum (ETH), the second-largest cryptocurrency, has experienced a further decline of 1.5% over the past 24 hours, reaching as low as $2,884. This downturn has resulted in an 8% decrease in the Ethereum price for the week, leading analysts to suggest that the price might dip further to around $2,500 before resuming its upward trajectory.

Whale Activity on Coinbase

As Ethereum continues to face selling pressure, whales have been actively moving their holdings. Spot On Chain, a prominent on-chain data provider, has identified a significant transaction involving an early Ethereum holder, known as 0x2ce. Approximately three hours ago, 0x2ce deposited 4,153 ETH, equivalent to $12.2 million, into Coinbase at a price of $2,931 per ETH.

This transaction follows a pattern of previous movements by the whale. Since 2021, 0x2ce has been actively depositing ETH into Coinbase and Luno, totaling 9,436 ETH at an average price of $2,245 per ETH, amounting to $21.2 million. The estimated total profit from these transactions amounts to $28.5 million, representing a remarkable increase of 204%.

Spot Ethereum ETF Approval Uncertainty

Ethereum investors had pinned their hopes on the arrival of the spot Ethereum ETF by May end. However, market analysts have been stating that the odds of such approval remain very slim, with a high chance of the ETF not coming to the market this year in 2024.

In a recent interview, senior Bloomberg analyst Eric Balchunas stated that the chances of spot Ethereum ETF approval by the U.S. SEC seem to be very slim, with no potential interactions between the issues and the SEC. The upcoming U.S. election in November could impact SEC leadership, potentially resulting in a more crypto-friendly chair if Donald Trump secures a second term.

Potential Price Reversal

In a recent assessment, renowned crypto analyst Michael van de Poppe highlighted the ongoing downward trajectory of Ethereum (ETH), anticipating a decline to the range of $2,500 to $2,750. Van de Poppe suggests that Ethereum's descent is nearing its conclusion, with the projected low likely to materialize within the next 1-2 weeks. He emphasizes that this forecast is contingent upon the possibility of further delays in the approval of an Ethereum Exchange-Traded Fund (ETF).

Technically, van de Poppe outlines a potential scenario where a final downward movement, termed a "sweep," occurs before a subsequent rotation towards Ethereum ensues. This analysis underscores the nuanced interplay between market dynamics and regulatory developments shaping Ethereum's price trajectory.