Ethereum, despite an 8% decrease over the last week, has shown a slight recovery, increasing by 0.3% in the past 24 hours to a trading price of $3,519. This comes amidst a broader market uncertainty and significant developments, such as the U.S. Securities and Exchange Commission’s recent approval of spot Ethereum ETFs.
Significant Accumulation by Long-Term Holders
Julio Moreno of CryptoQuant highlights that Ethereum has seen a major uptick in accumulation by long-term holders. On June 12, approximately 298,000 Ethereum tokens, worth around $1.34 billion, were purchased, capitalizing on a minor 2% price drop. This level of buying activity was only slightly less than the record high on September 11, 2023, when 317,000 tokens were bought as prices fell below $1,600. This behavior underscores the confidence that long-term investors hold in Ethereum’s future value.
Increase in Large Transactions
Concurrently, there has been an uptick in large Ethereum transactions exceeding $100,000, with counts rising from 4,000 to over 6,000 within the week. This suggests that whales are also actively accumulating, irrespective of the unstable market conditions.
Market Caution and Technical Analysis
On the other hand, the market exhibits caution, with a decrease in open interest by nearly 2% to $15.41 billion and a sharp 25.77% drop in trading volume, now at $24.19 billion. These figures indicate a tentative market posture, possibly in anticipation of further price shifts.
From a technical standpoint, while Ethereum’s failure to overcome its March highs has triggered a sell setup on its daily chart, suggesting possible continued downward pressure, the 4-hour chart hints at a potential short-term rise to around $3,800. This could provide the necessary liquidity for the ongoing downtrend, offering a complex and nuanced outlook for Ethereum’s near-term market movements.
