Ethereum is under pressure at press time, down about 15% since March 2024. On-chain data points to an optimistic picture, with sellers applying pressure and reversing all gains posted since May 20.
Ethereum HODLers collect 298,000 ETH in 24 hours.
Let’s look at one analyst, X. note Demand for ETH, especially from perpetual holders, has surged. In most cases, these permanent holders are institutions that are better funded and willing to hold out. Unlike retailers, these companies can choose to hold for the long term and are often unperturbed by market volatility.
Citing CryptoQuant data, the analyst said these perpetual holders are responsible for the second-highest daily purchases on record. When the price briefly rose on June 12, they bought a whopping 298,000 ETH. Surprisingly, this figure falls short of the all-time high of 317,000 ETH purchased on September 11, 2023.
In light of this, the surge in demand indicates strong bullish sentiment despite the clear lower lows on the daily chart.
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Additionally, considering the amount of ETH floating around in the market, it could be a sign that institutions like hedge funds or billionaires are starting to establish themselves in the market.
them seems to be This is to take advantage of low prices.
As of press time, Ethereum’s weakness is evident on the daily chart. Despite the bounce on June 12, the bulls were unable to fully reverse their losses on June 11. The pullback on June 13th means sellers are back on top and prices may adjust to the prominent June 11th bar.
The candlestick array on the daily chart shows $3,700 as a resistance level. After the breakout on June 7th, ETH actively filled the gap on May 20th with a freefall towards spot rates.
If the dump continues, ETH will likely retest $3,300 once again, despite optimism across the cryptocurrency industry.
Spot ETF Trading to Begin This Summer: Gensler
It remains to be seen whether the price will recover from current levels or fall to $3,300. Overall, the market is said to be optimistic. comment These are the words of Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC).
Appearing at the Senate hearing, Gensler said the spot Ethereum Exchange-Traded Fund (ETF), whose Form 194-b was approved in May, could tentatively begin trading in the summer. BlackRock has already resubmitted its S-1 filing and is awaiting approval.
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Once the product is approved in the coming weeks, ETH’s liquidity will improve significantly. Similar to spot Bitcoin ETFs, institutions will invest billions of dollars in ETH to provide exposure to their clients.
Featured image by DALLE, chart by TradingView