Ethereum Whales Capitulate as Analysts Predict $1,200 Price Floor Amid Market Turmoil
Ethereum whales are rapidly offloading large holdings of ETH as fears of a steep price correction intensify. With predictions of a potential drop to $1,200 and a major institutional player taking a $125M loss, the market faces heightened volatility. This report examines the key developments and their implications for Ethereum’s near-term trajectory.
Ethereum Whales Dump ETH Amid $1,200 Price Crash Predictions
Ethereum whales are offloading massive amounts of ETH ahead of predicted price crashes. World Liberty Financial liquidates ETH at a loss, facing a $125M hit. Analysts predict Ethereum’s price may stabilize at the $1,200 support level. Increased fears of a potential Ethereum price crash have triggered Ethereum whale capitulation. A long-term Ethereum investor, who had maintained an inactive account for over 7 years, deposited 2,000 ETH valued at $3.11 million, having originally purchased 10,001 ETH for $3.52 million in 2017.
Ethereum 2X Short ETFs Lead with Triple-Digit YTD Returns
The two best-performing exchange-traded funds (ETFs) year-to-date are exposed to short Ethereum (ETH) 2x Leveraged positions. According to Bloomberg senior ETF analyst Eric Balchunas, the UltraShort Ether ETF (ETHD), managed by ProShares, surpassed 247% in year-to-date returns and registered nearly $14 million in assets under management. REX Shares’ T-Rex 2X Inverse Ether Daily Target ETF (ETQ) followed closely, with a 219.2% performance in the same period and $1.57 million in assets. Balchunas noted that the prolonged drawdown in Ether has created conditions under which daily compounding effects have amplified gains for inverse leveraged products, although these funds are designed for short-term directional exposure and can be risky over extended periods.
SEC Approves Trading of Ether ETF Options
The Securities and Exchange Commission (SEC) approved the trading of options tied to ether (ETH) exchange-traded funds (ETFs). On Wednesday, the regulator greenlit a filing from Nasdaq ISE, filed last July, to list options contracts on BlackRock’s iShares Ethereum Trust (ETHA). Options are a popular trading vehicle for leveraging and hedging risk, particularly attractive to institutional investors managing large share volumes. The approval was expected, according to James Seyffart, an ETF analyst at Bloomberg Intelligence. The options are specifically for ETHA, making BlackRock’s product the only spot ether ETF on which options can be traded. Other funds are listed on the New York Stock Exchange’s Arca and Cboe.
SEC Approves Ethereum ETF Options Trading for BlackRock and Fidelity
The US Securities and Exchange Commission (SEC) has approved proposals from Nasdaq and Cboe to list and trade options on spot Ethereum (ETH) exchange-traded funds (ETFs) managed by BlackRock and Fidelity. The orders were granted for the iShares Ethereum Trust (ETHA) and the Fidelity Ethereum Fund (FETH) following a review process that included amendments, public comments, and regulatory justification. Both filings approved options with American-style exercise and physical settlement, adhering to existing listing rules applicable to ETF options.
