Coinspeaker Ether Records Historic Second-Biggest Hodler Buying Day, 298K ETH Purchased
In a significant development for the Ethereum market, the demand for ETH among long-term holders surged to its second-highest level on record. According to Julio Moreno, CryptoQuant’s Head of Research, permanent holders purchased a staggering 298,000 Ether in a single day, marking a buying spree similar to previous historic milestones.
The latest surge in buying activity is just 6% shy of the all-time high recorded on September 2023, when long-term investors acquired 317,000 ETH during a market downturn that saw ETH prices dip below $1,600. Analysts have been quick to spot these developments, predicting a positive outlook for Ethereum in the coming months.
Institutional and Retail Interest Driving Ethereum’s Momentum
The increase in ETH holdings aligns with the growing interest from institutional and retail investors. Data from Santiment reveals that addresses holding between 10,000 and 100,000 ETH accumulated over 240,000 ETH, valued at more than $840 million, between June 10 and June 12. The current accumulation reveals a continuation of that trend, with the numbers rapidly rising.
At the same time, Ethereum’s supply on centralized exchanges has dropped to multi-year lows, further indicating robust demand and reduced selling pressure. On Tuesday, Ethereum experienced a substantial net outflow from Coinbase, coinciding with what’s been dubbed the “big flush”.
Over 336,000 ETH, valued at around $1.17 billion, were withdrawn from the platform on June 12. This significant movement of funds suggests various factors could be at play, although rising net outflows generally indicate positive market dynamics for Ethereum.
However, ETH price is still hovering at the $3500 level, which has been marked as a significant resistance level. Analysts suggest that breaking through the $3,500 resistance could pave the way for a move beyond $4,000 in the short term.
Anticipated Approval of ETH ETFs
The possibility of regulatory approval for spot Ether exchange-traded funds (ETFs) has boosted Ethereum’s positive prospects. SEC Chairman Gary Gensler hinted at potential approvals before September, following the agency’s initial regulatory approval for 19b-4 filings by eight applicants on May 23.
While these developments are promising for institutional adoption, trading can begin only after S-1 registration statements receive approval. If ETH ETFs receive approval, Ethereum could potentially follow a trajectory similar to Bitcoin. Bitcoin ETFs have already attracted inflows exceeding $10 billion, showcasing significant investor interest and the potential for Ethereum to experience similar institutional adoption and market growth.
According to popular pseudonymous Twitter analyst Daan Crypto Trades, Ethereum is likely to outperform Solana in the near future as ETFs for Ethereum go live. The analyst drew parallels to Bitcoin’s performance, noting that Bitcoin has consistently outperformed Ethereum in this market cycle.
Investors are advised to remain cautious amidst the dynamic developments in the cryptocurrency markets, keeping a close eye on regulatory decisions and market conditions that could impact asset valuations.
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Ether Records Historic Second-Biggest Hodler Buying Day, 298K ETH Purchased