Ethereum is currently navigating through challenges but continues to display signs of potential for a rally.

With increased open interest and a rising Relative Strength Index (RSI), the market sentiment suggests higher highs and lows are on the horizon.

Although a slight dip in Ethereum’s price could occur in the short term, long-term traders stand to benefit, especially if the decentralized finance (DeFi) sector continues to grow and the Federal Reserve eventually cuts interest rates.

A notable event occurred recently when the whale address 0x41a…87EB3 liquidated 3,066 ETH, worth approximately $8.03 million, making a profit of $1.05 million.

This whale had earlier withdrawn 5,000 ETH from Binance at an average price of $2,227 between August 2023 and February 2024 to participate in the Blast protocol.

Out of this amount, 2,000 ETH were sold in August, resulting in a cumulative profit of $1.26 million. The liquidation of ETH by whales like this suggests active profit-taking, but also reflects the ongoing volatility and opportunity within the Ethereum market.

Ethereum Recorded Significant Inflows From Spot ETFs 

Additionally, Ethereum has seen significant inflows from spot ETFs. On October 17, there was a notable inflow of $48.4 million, underscoring the growing institutional interest in the asset. As Ethereum ETFs continue to attract capital, the possibility of a broader rally becomes more likely, especially as Ethereum’s use cases in DeFi and blockchain technology expand.

In summary, while Ethereum may face short-term fluctuations, the long-term outlook remains optimistic. Traders and investors are keeping a close eye on market movements, particularly as whales and institutional players continue to make significant moves within the ecosystem.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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