Key Notes
- A large crypto whale deposited 112,894 ETH into Binance.
- Ethereum is seeing its weakest Q4 for the first time in six years.
- ETH-based products continue their outflows amid weak demand.
Ethereum
ETH
$2 975
24h volatility:
1.7%
Market cap:
$359.00 B
Vol. 24h:
$18.20 B
is having its worst Q4 performance in years, with continuous outflows from the US-based exchange-traded funds, and the latest whale inflows just put even more pressure on the leading altcoin.
According to data from Lookonchain, the whale, known as 1011short, deposited 112,894 ETH, worth roughly $332 million, into Binance, the largest crypto exchange by trading volume.
Massive Binance inflows usually indicate an impending selling pressure, given the exchange’s high liquidity, which is necessary for large selloffs.
Data from Lookonchain shows that 1011short holds three active short positions in Bitcoin
BTC
$87 893
24h volatility:
0.7%
Market cap:
$1.75 T
Vol. 24h:
$35.63 B
, Ethereum, and Solana
SOL
$124.0
24h volatility:
0.4%
Market cap:
$69.81 B
Vol. 24h:
$3.15 B
, with a combined value of $749 million. At current prices, the whale is facing an unrealized loss of $49 million.
On the other hand, investment firm Trend Research has been accumulating huge amounts of Ethereum over the past month.
The company borrowed an additional $1 billion in stablecoins from the lending protocol Aave
AAVE
$150.3
24h volatility:
0.6%
Market cap:
$2.28 B
Vol. 24h:
$160.26 M
on December 29.
Trend Research already holds 601,074 ETH, worth $1.8 billion.
Ethereum is down by 28.8% over the past three months, its weakest Q4 performance since 2019, according to Coinglass data. The asset’s biggest price falls happened in October and November, but it continued its bearish consolidation in December.
The decline for the leading altcoin came as the broader crypto market lost more than $1 trillion of its value in the same timeframe.
Institutional interest in Ethereum also declined. Last month, spot ETH ETFs in the US recorded their all-time high net outflow of $1.42 billion, according to data from SoSoValue.
So far in December, the investment products have already registered a net outflow of $612.6 million, their second-largest selloff.
The negativity from the US market has been acting as a major bearish catalyst, not only for Ethereum, but for the broader crypto market as well.
Despite the recent losses, some analysts still expect the $8,500 price target for Ethereum.
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Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
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Source: https://www.coinspeaker.com/huge-whale-deposits-332m-as-ethereum-logs-weakest-q4-in-6-years/
