Permanent Ethereum holders are taking advantage of the dip to accumulate ETH. ETH price is expected to resume its upward trend, aiming directly at $4,000.
Currently, all eyes are on Ethereum as Gary Gensler, Chairman of the United States Securities and Exchange Commission (SEC), said that a spot Ethereum ETF could be approved by the end of this summer. While this news has brought some optimism to the ETH community, it has not yet been fully reflected in the price as Ethereum is still below $3,500 at press time.
Ethereum demand surges
Julio Moreno, head of research at CryptoQuant, noted that the market demand for Ethereum has increased significantly. According to Moreno, ETH permanent holders purchased a staggering 298,000 ETH yesterday, which is the second highest daily purchase volume on record.
As of now, the highest daily purchase record is still September 11, 2023, when ETH holders purchased 317,000 ETH. However, the current surge in Ethereum demand also highlights the growing interest and confidence of long-term investors in the cryptocurrency market.
The sharp increase in Ethereum demand comes as the price of ETH has corrected by more than 9% in the past seven days. On-chain indicators continue to show strength for the world's second-largest cryptocurrency. According to CoinGape, Ethereum withdrawals from the Coinbase exchange surged to 300,000 ETH, becoming one of the largest outflows in 2024. So far, the total value of Ethereum withdrawals has soared to more than $1 billion.
ETH price future trend
Despite the positive trend in on-chain indicators, ETH bulls have yet to gain enough control to spark a rally above $4,000. Currently, Ethereum is trading just below its critical support area at $3,500.
The last time ETH price fell below $3,500 was in April, leading to a 25% drop to a low of $2,814 on May 2. All eyes are on the SEC Chairman’s approval of the spot Ethereum ETF. This could inject a large amount of capital inflows, similar to what happened after the spot Bitcoin ETF was approved.
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