• 26 May, 2024

Hong Kong’s Green Light to Crypto ETFs Triggers On-Chain Whale Activity

Spot On Chain, a prominent crypto analytics platform, has reported a substantial uptick in Ethereum acquisitions by eight whales. This surge in buying activity comes on the heels of Hong Kong sanctioning Bitcoin and Ethereum exchange-traded funds (ETFs). 

These whales invested a staggering $31.88 million in USDT and USDC, cumulatively snagging 9,787 units of Ethereum. The average purchase price hovered around $3,257, a significant data point indicating the whales’ conviction in Ethereum’s value proposition. This strategic buying spree unfolded within a brief one-and-a-half-hour window, underscoring the swift response to the regulatory green light from Hong Kong.

The transactions showcase not only the whales’ agility but also their readiness to capitalize on favorable regulatory shifts. Significantly, the market is now witnessing the ramifications of this sizable influx of capital. Such movements illustrate the continued vibrancy of the cryptocurrency sector, where regulatory acceptance can prompt immediate and pronounced investment reactions.

Looking at the current broad market performance, most of the coins are trading in the green after the recent dip. As per CoinMarket Cap data, the total crypto market cap has climbed to the $2.41 trillion mark, an increase of over 4%, while the total trading volume faces a setback to $115 billion, a decline of 35%. Moreover, in the market dominance sector, Bitcoin is at 53.9% while Ethereum is at 16.1%.

As of press time, ETH is trading at $3,235, an increase of over 5% in the past 24 hours. Despite the recent market rebound, ETH remains down by 10% and 12% in the weekly and monthly charts, respectively. Ethereum’s market capitalization and trading volume stands at $387 billion and $21 billion, respectively. 

On the technical front, Ethereum exhibits a bearish outlook. Indicators such as the Relative Strength Index and Moving Average Convergence Divergence are in the negative region. The RSI is climbing toward the neutral region, currently at the 44 index, suggesting an increase in buying pressure.

ETH/USD chart: TradingView

The Moving Average Convergence Divergence suggests a bearish trend losing momentum as the red bars on the histogram reduce size. However, the MACD line is trending below the signal line, indicating that ETH is bearish amid the bullish resurgence observed by the formation of a series of green candlesticks.

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