Ethereum is attempting to secure the $2,000 level, but significant transfers by investors are causing concern in the market. The absence of staking in ETF products also negatively affects institutional investments.
Whale Transfers and Their Effect on Price
Despite Ethereum nearing $2,000, it struggles to maintain momentum. Analysts suggest that major ETH transfers by early investors are hindering this resistance level. According to blockchain analytics firms, an investor moved 34,125 ETH to Coinbase at an average price of $1,970, indicating high profitability from earlier acquisitions. Such large transactions can induce market volatility, especially during periods of low trading activity, thereby undermining investor confidence.
Lack of Staking in ETF Products
The interest in spot Ethereum ETFs has not met expectations due to the lack of staking features, a significant drawback for institutional investors seeking passive income. Robbie Mitchnick from BlackRock points out that the absence of staking is a major shortcoming, as it is vital for investment returns.
Prospects for Institutional Investors
Crypto asset managers like Bitwise are initiating talks with regulators to introduce staking features in ETFs. This could protect investors from volatility and provide additional income. However, the current lack of interest in these products might suppress Ethereum’s price potential in the short term.
While large transfers and the lack of staking in ETFs create uncertainty in the Ethereum market, its long-term prospects hinge on overcoming these hurdles.
