The Ethereum market is buzzing with anticipation as the launch of long-awaited spot ETFs inches closer. While the price has remained range-bound between $3,550 and $3,400 over the weekend, a different story is unfolding on the Ethereum network. A massive 56% surge in on-chain activity suggests investors are bracing for a major swing in market momentum.
ETF Delays Fuel Market Anxieties
Recent weeks have seen heightened volatility in the Ethereum market. The prolonged wait for the official launch of the newly approved ETH spot ETFs has caused anxiety not just among Ethereum holders, but across the entire crypto landscape. However, recent filings reported by Bloomberg offer a glimmer of hope. Institutional heavyweights like Blackrock and VanEck have reportedly submitted their final S-1 applications to the US Securities and Exchange Commission (SEC) on June 21st.
This final hurdle brings the launch a step closer, a move that could trigger a significant market reaction in the coming days. While the price dipped slightly after the news, most investors seem to be adopting a wait-and-see approach, awaiting further updates from the SEC.
Network Buzz Hints at Breakout Potential
Despite the lack of immediate price movement, on-chain activity paints a different picture. IntoTheBlock’s Daily Active Addresses metric, which tracks unique ETH wallets involved in transactions, reveals a significant shift in network usage. This surge suggests investors are gearing up for major trading activity in the near future.
On June 17th, the network recorded 515,610 active ETH wallets. This remained relatively stable until news of the S-1 filings broke on June 21st. Since then, network activity has skyrocketed by a whopping 56%, reaching a staggering 806,500 active addresses by June 23rd.
Such a significant rise in on-chain activity typically indicates a large number of investors preparing for a major event. It’s likely only a matter of time before this surge translates into price action for Ethereum.
A $4,000 Breakout on the Horizon?
Ethereum’s price has consolidated within a tight range over the weekend. However, the on-chain activity suggests investors are anticipating a significant shift in market momentum. According to IntoTheBlock, Ethereum’s current price of $3,429.04 sits at a critical juncture. Support seems to be holding firm around $3,334, while resistance sits near $3,575.
The market eagerly awaits updates on the Ethereum ETF applications. A positive ruling from the SEC could trigger a bullish breakout, propelling Ethereum towards the $4,000 mark. With the backing of institutional giants like Blackrock and VanEck, the potential for a major price surge is undeniable.
As the investor community awaits the SEC’s decision, the heightened network activity suggests a readiness to capitalize on any positive developments. The upcoming ETF news could be the catalyst needed for a breakout. With spiking network activity and rising investor interest, Ethereum has a strong chance of breaking new highs above $4,000 in the near future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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