At press time, Ethereum is under pressure, down around 15% since March 2024. As sellers press on, reversing all gains made since May 20, on-chain data points to a bullish picture.
Ethereum HODL players collected 298,000 ETH in 24 hours
Going to X, one analyst notes a edged enhance in demand for ETH, especially from regular holders. Most likely, these indefinite holders are institutions with deeper pockets and willing to stick around. Unlike retailers, these entities can often choose to hold positions for longer and will not be unsettled by market volatility.
Citing CryptoQuant data, the analyst said these regular holders are responsible for the second-largest daily purchases, according to the data. On June 12, when prices briefly spiked, they purchased a staggering 298,000 ETH. Impressively, this number is just below the record amount of 317,000 ETH purchased on September 11, 2023.
In lightweight of this, despite the clear wave of lows on the daily chart, the enhance in demand indicates a robust bullish sentiment.
Additionally, given the amount of ETH raised from the markets, it could signal that institutions, perhaps hedge funds or billionaires, are starting to position themselves in the market.
They seems to be taking advantage of lower prices.
At press time, Ethereum is showing weakness, observable on the daily chart. Even after the June 12 rebound, the bulls did not completely reverse the June 11 losses. The June 13 decline means sellers are back in the equation and prices may level out towards the clear June 11 bar.
From the candlestick pattern on the daily chart, the resistance level is $3,700. After breaking out on June 7, ETH freely falls to spot rates, actively filling the gap from May 20.
If the airdrop continues, it is likely that ETH, despite all the optimism in the crypto scene, will test $3,300 again.
Spot ETFs to start trading this summer: Gensler
Time will tell whether prices will rebound from current levels or fall to $3,300. Overall, the market is bullish, I think comments from Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC).
Appearing at a Senate hearing, Gensler said the Ethereum Exchange Traded Fund (ETF) spot fund, whose Forms 194-b was approved in May, could begin trading tentatively in the summer. BlackRock has already re-filed its S-1 and is awaiting approval.
If the product is approved in the next few weeks, it will be a significant enhance in ETH liquidity. Like spot Bitcoin ETFs, institutions will likely funnel billions into ETH, enabling their clients to gain exposure.
Feature image from DALLE, chart from TradingView
