As the cryptocurrency sector continues to face turbulence with fluctuating prices, Coinbase, one of the world’s leading cryptocurrency exchanges, experienced an unprecedented withdrawal of over 336,000 Ethereum (ETH), valued at an astounding $1.17 billion.
This significant development was highlighted by Burak Kesmeci, an analyst at popular crypto analytics firm CryptoQuant, on Wednesday, June 12, 2024, suggesting potential price surges in the near future and sparking a wave of optimism among investors.
In a detailed post, the pundit noted that the latest withdrawal marked the fifth instance where more than 150,000 Ethereum tokens have been withdrawn in a single day. According to the pundit, such sizable transactions, ranging between $400 million and $1.1 billion each, suggest the involvement of major players in the market.
“It’s highly likely that these significant Ethereum withdrawals are driven by whales or as-yet-unknown institutions,” wrote Kesmeci
While the exact motivations behind this massive withdrawal remain in mystery, drawing parallels to past activities preceding the trading of Bitcoin Spot ETFs, the analyst speculated that this move could be a strategic maneuver by institutional investors or whales anticipating a bullish trend in Ethereum prices.
“We observed similar activities on Coinbase before the trading of Bitcoin Spot ETFs began…Whether this assumption is correct will become clear in the coming days. However, such movements that reduce the circulating supply (high demand) are expected to have a positive impact on the price in the medium to long term,” he added.
Recent developments in the crypto landscape further fuel this surge in optimism. Analysts from global investments firm VanEck recently revised their Ethereum price prediction for 2030 to an ambitious $22,000.
“We’ve raised our 2030 ETH price target to $22K, influenced by ether ETF news, scaling progress, and our read of onchain data. Additionally, we’ve analyzed how ETH and BTC perform in both traditional and crypto-only portfolios for optimal returns.” The firm stated last week.
Furthermore, Ethereum’s robust fundamentals continue to bolster confidence in its long-term trajectory. With a thriving digital economy attracting approximately 20 million monthly active users and facilitating billions in stablecoin transfers, Ethereum stands out as a dynamic economic platform poised for sustained growth.
Additionally, the recent burning of over 541,000 ETH tokens in the past six months, amounting to $1.58 billion, as per data from Dune, underscores the network’s inherent value proposition.
At press time, ETH was trading at $3,629, reflecting a 3.11% surge over the past 24 hours. The surge, majorly influenced by the FOMC press conference later in the day, where investors expect softer-than-expected inflation data, bolstered market optimism, with Bitcoin rising by 4.05% in the same period.
