ethereum is under pressure at press time, falling roughly 15% since March 2024. As sellers continue to push, reversing all gains posted since May 20, on-chain data points to a bullish outlook.
ethereum HODLers get 298,000 eth in 24 hours
Carrying x, an analyst x.com/jjcmoreno/status/1801334325188735048″ target=”_blank” rel=”nofollow”>grades an increase in demand for eth, especially from permanent holders. These permanent holders are most likely institutions with deeper pockets and are willing to hold out. Unlike retailers, these entities can often choose to hold their shares longer and will not be affected by market volatility.
Citing data from CryptoQuant, the analyst said that these permanent holders, according to records, are responsible for the second highest daily purchase. On June 12, when prices briefly rose, they purchased a staggering 298,000 eth. Surprisingly, this figure falls short of the all-time high of 317,000 eth purchased on September 11, 2023.
In view of this, despite the wave of clearer lows on the daily chart, the increase in demand points to strong bullish sentiment.
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Additionally, considering the amount of eth mined from the markets, it could indicate that institutions, possibly hedge funds or billionaires, are beginning to position themselves in the market.
They seems to be taking advantage of the lowest prices.
At press time, there is weakness in ethereum, evident on the daily chart. Even with the June 12 bounce, the bulls did not completely reverse the June 11 losses. The June 13 drop means sellers are back in the equation and prices could line up toward the eye-catching June 11 bar.
Based on the candle arrangement on the daily chart, $3,700 emerges as a resistance level. After the June 7 breakout, eth has been in free fall towards spot rates, actively filling the May 20 gap.
If the dump continues, eth, even with all the optimism in the crypto scene, is likely to retest $3,300.
Spot ETFs to start trading this summer: Gensler
It remains to be seen whether prices will recover from current levels or fall towards $3,300. Overall, the market is optimistic, according to comments by Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC).
Appearing at a Senate hearing, Gensler said the ethereum Spot exchange-traded fund (ETF), whose 194-b forms were approved in May, may begin trading at a tentative time in the summer. BlackRock has already resubmitted its S-1 application and is awaiting approval.
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If the product is approved in the coming weeks, it will be a significant liquidity boost for eth. Like bitcoin spot ETFs, institutions will likely funnel billions into eth, allowing their clients to gain exposure.
Featured image of DALLE, TradingView chart
