Ethereum is under pressure at the time of publication, falling about 15% since March 2024. As traders press, to reverse all the gains posted since May 20, the on-chain data points to a bullish picture.
Ethereum HODLers Scoop 298,000 ETH In 24 Hours
It is based on X, a single analyst notes increased demand for ETH, especially for current holders. Chances are, these incumbents are institutions with deep pockets and are determined to hold on. Unlike sellers, these businesses can often choose to hold for the long term and will not be swayed by market volatility.
Citing CryptoQuant data, the analyst said that these current owners, according to records, are responsible for the second highest daily purchases. On June 12, when prices briefly rose, they bought an incredible 298,000 ETH. Surprisingly, this figure is down from the peak of 317,000 ETH purchased on September 11, 2023.
Because of this, despite the clear downward wave on the daily chart, the increase in demand points to a strong bullish sentiment.
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Also, considering the amount of ETH released in the markets, it may indicate that institutions, maybe hedge funds or billionaires, are starting to place themselves in the market.
See it seems like take advantage of the low prices.
At press time, there is weakness in Ethereum, which is visible on the daily chart. Even with the bounce on June 12, the bulls did not fully reverse the losses of June 11. The dip on June 13 means that the sellers are back in the equation, and prices can align with the bright bar of June 11.
From the candlestick pattern on the daily chart, $3,700 appears as a resistance level. After the breakout on June 7th, ETH has been free-falling to see prices, actively filling the gap of May 20th.
If the rejection continues, it’s possible that ETH, despite the optimism that permeates the entire crypto space, will retest $3,300.
Spot ETFs To Begin Trading This Summer: Gensler
Whether prices will recover from current levels or drop to $3,300 remains to be seen. Overall, the market is up, according to opinions from Gary Gensler, chairman of the United States Securities and Exchange Commission (SEC).
Appearing on the Senate floor, Gensler said the Ethereum exchange-traded fund (ETF), whose 194-b forms were approved in May, could begin trading as soon as summer. BlackRock has already resubmitted its S-1 filing and is awaiting approval.
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If the product is approved in the next few weeks, it will be a huge capital boost for ETH. Like Bitcoin ETFs, institutions will likely send billions in ETH, allowing their clients to gain exposure.
Insert image from DALLE, chart from TradingView
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