In a recent development, a crypto whale identified as 0x837 has converted over $18 million worth of PEPE tokens into Ethereum (ETH) within the past few hours.
Why Were These PEPE Tokens Converted
This transaction coincides with a decline in the PEPE token’s price and heightened investor interest in Ethereum, driven by the anticipation of the spot Ethereum ETF.
Recent reports reveal that whale 0x837 has liquidated its PEPE holdings in favor of Ethereum. Some hours ago, this whale withdrew 1,728 ETH, valued at around $5.86 million, from the Binance exchange.
Over the past two days, 0x837 has accumulated a total of 4,374 ETH, worth approximately $14.91 million. These ETH holdings have been staked in the Compound protocol, indicating a strategy focused on yield generation.
Detailed transaction records show significant market activity by the whale. Coingape reported that 0x837 deposited 300 billion PEPE tokens, valued at about $3.85 million, into Binance yesterday.
This transaction incurred a loss of approximately $1.73 million for the whale. Additionally, the whale deposited 1.1 trillion PEPE, valued at $14.42 million, and withdrew 1,210 ETH, worth $4.1 million, from Binance the previous day. The whale also converted 1.4 trillion PEPE tokens into 2,646 ETH, totaling $18.01 million.
The average transaction price was $3,416, reflecting a deliberate strategy to accumulate ETH. This activity aligns with the market sentiment, which is optimistic for Ethereum, especially with the potential approval of a spot Ethereum ETF by the Securities and Exchange Commission (SEC), despite recent requests for issuers to revise their S-1 forms.
The potential approval of a spot Ethereum ETF is expected to attract considerable institutional interest in Ethereum. The trends from Bitcoin ETFs shows a robust demand for cryptocurrencies by institutional investors. However, experts predict that inflows into Ether spot ETFs could be substantially lower than those seen with US spot Bitcoin ETFs.
Estimates suggest that Ether ETF inflows might be around 33% of Bitcoin ETF inflows, with a possible range from 20% to 50%. This prediction is based on the capitalization multiple between Ethereum and Bitcoin, indicating that while interest in Ethereum is strong, it may not reach the unprecedented levels observed with Bitcoin.
See Also: The SEC Confirms Smooth Approval Process for Ethereum ETF
Price Analysis
In terms of price trends, PEPE has shown a bearish movement over the last 24 hours. Its price has fluctuated between an intra-day high of $0.000012 and a low of $0.00001145. At the time of reporting, PEPE was trading at $0.00001161, marking a 2% decline from its resistance level.
Meanwhile, Ethereum has been experiencing a price recovery, with bullish momentum driving the price above $3,500. Over the last 24 hours, ETH’s price has ranged between a support level of $3,363.44 and a resistance level of $3,401.73. Currently, Ethereum is trading at $3,381.23, with bulls maintaining market control.
In summary, the whale’s large-scale conversion of PEPE to Ethereum shows the anticipation for the spot Ethereum ETF.
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