Ethereum (ETH) witnessed a surge in long-term holder accumulation on June 12th, capitalizing on a slight price drop. This strong buying pressure suggests investors remain optimistic about the world’s second-largest cryptocurrency.
“Ethereum demand has spiked,” tweeted CryptoQuant research head Julio Moreno on June 13th, highlighting that accumulation addresses acquired a staggering 298,000 ETH tokens within 24 hours, representing roughly $1.34 billion at the time. This surge falls just 6% short of the all-time high for long-term holder buying, set on September 11th, 2023, during a price dip below $1,600.
The accumulation trend coincides with a recent price decline for ETH. Over the past week, the cryptocurrency has shed 8.49%, briefly falling below $3,800 on June 8th. However, it has managed to stay above the $3,400 mark, according to CoinMarketCap data.
As of this writing, ETH trades around $3,472. Analysts have pointed to the $3,500 price point as a significant resistance level for bulls, suggesting potential short-term volatility. Additionally, a Cointelegraph report from June 11th warns of a possible further decline, citing a similar price drop in April that led to a 25% plunge.
However, positive regulatory developments might be fueling investor confidence. The Chair of the US Securities and Exchange Commission (SEC), Gary Gensler, recently hinted at the possibility of spot Ether ETFs receiving final approval for trading by September.
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On June 13th, Cointelegraph reported that Gensler, during a Senate Banking Committee hearing, expressed optimism about approving spot Ether ETF applications within the next three months. This follows the SEC’s preliminary approval for 19b-4 filings from eight ETF applicants on May 23rd. While this is a positive step, final trading approval hinges on the go-ahead for S-1 registration statements.
The recent accumulation by long-term holders, coupled with the potential for spot Ether ETFs, suggests that investors see long-term value in Ethereum(ETH) despite the current price dip. However, navigating the short-term volatility and potential regulatory hurdles remains crucial for the cryptocurrency’s future trajectory.
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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