Ethereum is under selling pressure from large holders amid uncertainty related to the U.S. presidential election. Institutional demand for Ethereum ETFs remains subdued, further challenging price recovery.
As the cryptocurrency market navigates election-driven uncertainty, Ethereum (ETH) faces downward pressure. Currently trading near $2,443, ETH has declined 0.73% in the last 24 hours and 7% over the past week. Despite a slight recovery in total market cap (up 0.18%) and a 12.5% increase in trading volume, many altcoins, including ETH, have faced declines.
Data shows Ethereum’s market cap is approximately $297.4 billion, with a 24-hour trading volume of $12.34 billion. Analysts note that continued selling by large holders, or whales, could impede ETH’s recovery, raising concerns about its ability to surpass the $3,000 resistance level.
Recently, a significant whale withdrew over 96,000 ETH from Coinbase after a 40-day absence, transferring 15,000 ETH to Kraken, suggesting potential selling activity. Additionally, a wallet from the Cosmos Network sent 3,500 ETH to Coinbase, highlighting the trend of substantial withdrawals affecting market dynamics.
Could ETH See a Breakout?
Market sentiment could turn bullish if election results stimulate renewed optimism. Futures markets show growing optimism, with funding rates up 85% as traders speculate on a Trump victory, which might support Ethereum ETF demand.
Despite this, low institutional demand has constrained ETH’s growth. Ethereum ETFs have seen modest inflows compared to Bitcoin ETFs, reflecting institutional caution, and outflows continue from the Grayscale Ethereum Trust.
With ETH’s price near crucial support levels, traders are watching for breakout possibilities, as the upcoming election may play a key role in shaping market direction.
