{"id":26096,"date":"2025-08-14T17:43:38","date_gmt":"2025-08-14T14:43:38","guid":{"rendered":"https:\/\/forklog.com\/en\/analysts-warn-of-risks-for-ethereum-holders\/"},"modified":"2025-08-14T17:43:38","modified_gmt":"2025-08-14T14:43:38","slug":"analysts-warn-of-risks-for-ethereum-holders","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/analysts-warn-of-risks-for-ethereum-holders\/","title":{"rendered":"Analysts warn of risks for Ethereum holders"},"content":{"rendered":"<p>The second-largest cryptocurrency\u2019s rise above $4700 rests on expectations of a rate cut by the <span data-descr=\"United States Federal Reserve System\" class=\"old_tooltip\">Fed<\/span> in September. Analysts warned that if the central bank fails to deliver, the price could tumble, reports <a href=\"https:\/\/cointelegraph.com\/news\/ether-price-rally-united-states-federal-reserve-rates-impact-analysts\">Cointelegraph<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe main issue is that the market move is based on the assumption of a Fed rate cut next month,\u201d said Swyftx lead analyst Pav Hundal.<\/em><\/p>\n<\/blockquote>\n<p>At the time of writing, Ethereum trades at $4546. Its price is within 6% of the all-time high of $4878, according to <a href=\"https:\/\/www.coingecko.com\/en\/coins\/ethereum\">CoinGecko<\/a>.<\/p>\n<p>Market participants put the probability of a September rate cut at 94.6%.<\/p>\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-qw.googleusercontent.com\/docsz\/AD_4nXcuA2d3xdBJXUmHi7sBxla0Vsecw_EMY5sOsWx_QzG77esI-UDeoezZqYCEcJg9Zny_o3IoaxjuVWz9jbt0f2HvbM1wfsIKerlzdntRprqdBoHO-NhtKpdKZsOSBz_eW-h6eAH-1A?key=kC44h7kGfmB2iSlivMiCrw\" alt=\"\u0410\u043d\u0430\u043b\u0438\u0442\u0438\u043a\u0438 \u043f\u0440\u0435\u0434\u0443\u043f\u0440\u0435\u0434\u0438\u043b\u0438 \u043e \u0440\u0438\u0441\u043a\u0430\u0445 \u0434\u043b\u044f \u0434\u0435\u0440\u0436\u0430\u0442\u0435\u043b\u0435\u0439 Ethereum\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\">CME FedWatch Tool<\/a>.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cIt looks like the price is priced for perfection. At such times you need to be especially careful,\u201d Hundal added, pointing to inflows into spot <\/em><em>ETH<\/em><em> ETFs and stable funding rates.<\/em><\/p>\n<\/blockquote>\n<p>Capriole Investments founder Charles Edwards also believes the price of the second-largest cryptocurrency will keep rising. However, he agrees that an unexpected Fed decision could affect the market. In his words, it could \u201cscare liquidity, when capital just freezes and flows stop.\u201d<\/p>\n<p>Edwards suggested that Ethereum will likely \u201cquite easily double\u201d in the coming months if bitcoin reaches $150,000\u2013$200,000.<\/p>\n<p>Not all experts are convinced a cut is coming. Morgan Stanley Wealth Management chief economic strategist Ellen Zentner <a href=\"https:\/\/www.marketwatch.com\/story\/will-powell-use-jackson-hole-speech-to-push-back-on-hopes-for-september-rate-cut-449cba14\">noted<\/a> that Fed officials could \u201crein in\u201d market expectations if they judge them to be misguided.<\/p>\n<p>Kansas City Federal Reserve Bank president Jeff Schmid also <a href=\"https:\/\/www.investopedia.com\/fed-officials-still-on-the-fence-about-september-rate-cut-11790455\">considers<\/a> the current monetary policy \u201cappropriate for now.\u201d<\/p>\n<h2 class=\"wp-block-heading\">ICO whales take profits<\/h2>\n<p>One early Ethereum investor moved 1060 ETH (~$5.1 million) to the Kraken exchange. According to <a href=\"https:\/\/intel.arkm.com\/explorer\/address\/0x815C53bF36a3BC8B066715Da459B365e6ce6c3eD\">Arkham<\/a>, this was the fourth such transaction in the past four days.<\/p>\n<p>Earlier, from an address beginning with 0x815, the exchange received tranches of 2000 ETH ($8.6 million), 1162 ETH ($5.2 million) and 1121 ETH ($5.2 million). Total deposits for the week reached $24.1 million.<\/p>\n<p>Arkham data show the wallet still holds 4657 ETH worth $21.12 million. Transfers to exchange addresses often point to an intention to sell.<\/p>\n<p>According to Onchain Lens, this participant received 100,000 ETH during the ICO, paying $31,100.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">An <a href=\"https:\/\/twitter.com\/hashtag\/Ethereum?src=hash&#038;ref_src=twsrc%5Etfw\">#Ethereum<\/a> ICO participant has deposited 2,000 <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a>, worth $8.55M, into <a href=\"https:\/\/twitter.com\/hashtag\/Kraken?src=hash&#038;ref_src=twsrc%5Etfw\">#Kraken<\/a>.<\/p>\n<p>The whale initially received 100,000 <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> for $31,100 at the time of the ICO.<\/p>\n<p>The whale still holds 58,000 <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a>, worth $247.86M in multiple wallets.<\/p>\n<p>Deposit Address:\u2026 <a href=\"https:\/\/t.co\/nu90RGpWUX\">pic.twitter.com\/nu90RGpWUX<\/a><\/p>\n<p>\u2014 Onchain Lens (@OnchainLens) <a href=\"https:\/\/twitter.com\/OnchainLens\/status\/1954839723320672302?ref_src=twsrc%5Etfw\">August 11, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Today that haul is valued at $471 million. Analysts noted the whale still holds more than 50,000 ETH across multiple wallets.<\/p>\n<p>This is not the only early investor moving funds amid Ethereum\u2019s rally. According to <a href=\"https:\/\/x.com\/lookonchain\/status\/1954769794445738489\">Lookonchain<\/a>, on August 11 another ICO participant sent 2300 ETH (~$9.9 million) to Kraken. He obtained 20,000 ETH for $6200 in the crowdsale; they are now worth about $94 million. The address retains 1623 ETH worth $7.6 million.<\/p>\n<p>Ethereum\u2019s token sale ran from July to September 2014. The project raised about $18.3 million, selling more than 60 million ETH at an average price of $0.31.<\/p>\n<h2 class=\"wp-block-heading\">Ethereum withdrawal queue swells<\/h2>\n<p>The amount of ETH queued for withdrawal from Ethereum staking has reached 671,900 ETH (~$3.1 billion). Requests began piling up amid the summer price rally.<\/p>\n<p><iframe loading=\"lazy\" width=\"100%\" height=\"420\" frameborder=\"0\" src=\"https:\/\/www.theblock.co\/data\/on-chain-metrics\/ethereum\/ethereum-validator-queue\/embed\" title=\"Ethereum Validator Queue\"><\/iframe><\/p>\n<p>The rise in requests has pushed waiting times from nine to roughly 12 days. By contrast, the queue to enter staking is much smaller \u2014 105,620 ETH (~$480 million).<\/p>\n<p>An analyst going by the pseudonym Ignas cited several reasons for the build-up.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ Record number of <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> is in the unstaking queue:<\/p>\n<p>671k <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a> = $3.2B USD<\/p>\n<p>What&#8217;s more, queue wait time reached record of ~12 days.<\/p>\n<p>Why is it happening? A few reasons: <a href=\"https:\/\/t.co\/W2dAXXxome\">pic.twitter.com\/W2dAXXxome<\/a><\/p>\n<p>\u2014 Ignas | DeFi (@DefiIgnas) <a href=\"https:\/\/twitter.com\/DefiIgnas\/status\/1955934691347063065?ref_src=twsrc%5Etfw\">August 14, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>One is the closing of leveraged positions. Traders who received liquid-staking tokens (LSTs) such as stETH and borrowed against them are cutting risk as borrowing costs rise.<\/p>\n<p>Another is arbitrage and concern over a possible LST depeg from ether. The decline in stETH\u2019s rate versus ETH may have prompted participants to withdraw from staking to rotate between tokens and capture the spread. Ignas noted that Lido, EthFi and Coinbase were among the largest sources of withdrawals.<\/p>\n<p>The expert also suggested that some validators are changing strategy in anticipation of new staking products in the US. In May, the US Securities and Exchange Commission <a href=\"https:\/\/forklog.com\/en\/news\/sec-clarifies-staking-regulations\">clarified<\/a> that the process does not violate securities rules.<\/p>\n<p>Finally, with Ethereum\u2019s price nearing record highs, some validators may simply be taking profits.<\/p>\n<p>Earlier, inflows into ETFs tied to the second-largest cryptocurrency <a href=\"https:\/\/forklog.com\/en\/news\/ether-etf-inflows-outstrip-issuance-since-the-merge\">exceeded<\/a> the issuance of new coins after The Merge. US spot exchange-traded funds attracted $2.45 billion in a month, roughly equivalent to about 500,000 ETH.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The second-largest cryptocurrency\u2019s rise above $4700 rests on expectations of a rate cut by the Fed in September. Analysts warned that if the central bank fails to deliver, the price could tumble, reports Cointelegraph. \u201cThe main issue is that the market move is based on the assumption of a Fed rate cut next month,\u201d said [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":26095,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1289,46,1156,1138],"class_list":["post-26096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-staking","tag-ethereum","tag-institutional-investors-and-whales","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"49","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=26096"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/26096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/26095"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=26096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=26096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=26096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}