Key Points
- Long-term holders of Ethereum purchased 298,000 Ether in a single day, marking the second-largest buying day in history.
- Institutional and retail interest, coupled with the potential approval of Ether ETFs, are driving Ethereum’s momentum.
In a notable event for the Ethereum market, the demand for ETH among long-term investors reached its second-highest level.
Julio Moreno, Head of Research at CryptoQuant, reported that these long-term holders bought an impressive 298,000 Ether in just one day, echoing previous historic buying events.
Buying Activity and Future Outlook
This recent buying activity is only 6% short of the record set in September 2023, when long-term investors bought 317,000 ETH during a market slump that saw ETH prices fall below $1,600.
This event has caught the attention of analysts, who are forecasting a positive future for Ethereum.
The growth in ETH holdings corresponds with the rising interest from both institutional and retail investors.
Santiment data shows that addresses holding between 10,000 and 100,000 ETH accumulated over 240,000 ETH, worth more than $840 million, in just two days.
This current accumulation suggests a continuation of this trend, with the numbers rapidly increasing.
Ethereum and Exchange Dynamics
Simultaneously, the supply of Ethereum on centralized exchanges has reached multi-year lows, indicating strong demand and less selling pressure.
On Tuesday, Ethereum saw a significant net outflow from Coinbase, coinciding with what’s been termed the “big flush”.
Over 336,000 ETH, worth around $1.17 billion, were withdrawn from the platform on June 12.
This substantial movement of funds suggests a variety of factors could be influencing the market, although increasing net outflows generally signal positive market dynamics for Ethereum.
Despite these developments, the ETH price remains around the $3500 mark, a significant resistance level.
Analysts believe that breaking through the $3,500 resistance could set the stage for a rise above $4,000 in the near term.
The potential regulatory approval for spot Ether exchange-traded funds (ETFs) has added to Ethereum’s positive outlook.
SEC Chairman Gary Gensler hinted at possible approvals before September, following the agency’s initial regulatory approval for 19b-4 filings by eight applicants in May.
These developments are promising for institutional adoption, but trading can only start after S-1 registration statements are approved.
If ETH ETFs are approved, Ethereum could potentially follow a similar path to Bitcoin, which has already attracted more than $10 billion in inflows, demonstrating significant investor interest and the potential for Ethereum to experience similar institutional adoption and market growth.
According to a popular pseudonymous Twitter analyst, Ethereum is likely to outperform Solana in the near future as Ethereum ETFs go live.
The analyst compared this to Bitcoin’s performance, stating that Bitcoin has consistently outperformed Ethereum in this market cycle.
Investors are encouraged to stay vigilant due to the dynamic developments in the cryptocurrency markets, closely watching regulatory decisions and market conditions that could affect asset valuations.
