Ethereum HODLers Scoop 298,000 ETH Amid Market Volatility
On June 12, during a brief price surge, Ethereum holders purchased a staggering 298,000 ETH. Despite Ethereum tumbling approximately 15% since March 2024, on-chain data is presenting a bullish outlook as sellers reverse gains posted after May 20.
Ethereum HODLers Scoop 298,000 ETH In 24 Hours
An analyst highlights a spike in ETH demand, particularly from long-term holders. These permanent holders, likely institutions with substantial capital, are choosing to hold despite market volatility. Unlike retail investors, these entities can weather market fluctuations without being easily shaken out.
Citing CryptoQuant data, the analyst notes that these permanent holders are responsible for the second-largest daily purchase on record. On June 12, they acquired a staggering 298,000 ETH, just shy of the all-time high of 317,000 ETH purchased on September 11, 2023.
This surge in demand underscores a strong bullish sentiment despite recent price declines. The significant amount of ETH scooped from the markets signals that institutions, possibly hedge funds or billionaires, may be positioning themselves strategically amidst lower prices.
Current Market Dynamics
At the time of writing, Ethereum displays weakness in daily charts. Despite the bounce on June 12, bulls failed to completely reverse the losses from June 11. Sellers re-entered on June 13, causing prices to potentially align towards the June 11 bar.
From the candlestick arrangement, $3,700 is emerging as a critical resistance level. After a breakout on June 7, ETH has been free-falling to spot rates, actively filling the May 20 gap. If the downward trend persists, ETH might re-test the $3,300 mark, despite overall optimism in the crypto market.
Spot ETFs To Begin Trading This Summer: Gensler
The market outlook remains cautiously optimistic. Gary Gensler, chair of the United States Securities and Exchange Commission (SEC), indicated that spot Ethereum exchange-traded fund (ETF), approved in May, could begin trading this summer. BlackRock has already resubmitted its S-1 filing and is awaiting approval.
If approved, the product could significantly boost ETH liquidity. Similar to spot Bitcoin ETFs, institutional investors might channel billions into ETH, providing their clients with market exposure.
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