The recent rise of Altcoin above $4,200 has led to a significant increase in whale activity and liquidations in the Ethereum market. This situation is a result of changing sentiments among traders.
Analysis of Market Liquidations
On August 9, a sharp increase in liquidations among traders was recorded. One trader, known as 0xcB92, was completely liquidated when Altcoin broke the $4,200 mark, losing over $15.85 million. Shortly after, he was left with 10,000 Altcoin worth $40.8 million, with a new liquidation price of 4,114.3. Another whale, known as 0x3c9E, panic sold 38,582 Ethereums for $136.89 million and then re-entered by buying 1,800 Ethereums for $7.22 million amid increased volatility.
Impact of ETFs on Ethereum Market
Data from Lookonchain showed that on August 8, Ethereum ETFs registered net inflows of $169.2 million. Notably, the iShares Altcoin Trust recorded 26,604 Altcoin worth $103.89 million. Over the last four trading days, a total net inflow of $537 million into spot Ethereum ETFs was observed. Additionally, Bitcoin ETFs also experienced inflows of $256.01 million, although most funds showed negative seven-day values.
Signals for Altseason
Market trends indicate that the ETH/BTC ratio increased by 38.5% over the last 30 days, suggesting Ethereum's growing strength relative to Bitcoin. Simultaneously, Bitcoin's dominance dropped to 60.82%, which could signal an impending rotation into altcoins. Market analyst Michaël van de Poppe predicts potential returns for altcoins in the range of 200-500% by October, with Ethereum's breakout likely serving as a main trigger.
Currently, the Ethereum market shows signs of growth, yet the average return for Ethereum in the third quarter is only 6.48%. Investors should exercise caution given potential changes in market dynamics.
