Ethereum has been facing pressure recently, with a 15% drop from March 2024 levels, erasing gains made since May 20. Despite this, on-chain data suggests a positive outlook.
In the past 24 hours, Ethereum HODLers managed to secure a significant amount of ETH, totaling 298,000. Analysts have observed a spike in demand for ETH, particularly from long-term holders, most likely institutions with substantial resources who are in it for the long haul.
Data from CryptoQuant indicates that these permanent holders made the second-highest daily purchase on June 12, buying 298,000 ETH. This influx of ETH into their wallets hints at a bullish sentiment in the market, even as prices continue to trend downwards.
While Ethereum prices have been struggling, with $3,700 emerging as a resistance level, there is optimism in the market. Gary Gensler, the chair of the SEC, mentioned in a senate hearing that the spot Ethereum ETF may start trading this summer, potentially attracting significant liquidity to ETH from institutions.
If approved, the ETF could provide a major boost to ETH prices, similar to what spot Bitcoin ETFs have done. This development could see billions of dollars flowing into Ethereum, allowing more investors to gain exposure to the cryptocurrency.
In conclusion, while Ethereum faces short-term challenges in price action, the influx of ETH into the hands of long-term holders and the potential launch of a spot ETF indicate a positive outlook for the cryptocurrency. Investors are advised to conduct their research before making any investment decisions, as the market remains volatile.
Dalmas, a respected crypto reporter, has been covering the industry for over eight years, providing valuable insights and analysis. His expertise and commitment to educating readers about the crypto landscape have made him a trusted voice in the community. Connect with Dalmas on X: @Dalmas_Ngetich, or on Telegram @Dalmas_Ngetich for more information and updates.