Ethereum
Permanent Ethereum Holders Harvest 298,000 ETH in One Day, Will ETH Price Rebound Soon?
All eyes are currently on Ethereum as US Securities and Exchange Chairman Gary Gensler stated that the approval of the Ethereum Spot ETF will happen by the end of this summer. While this news has brought some optimism to the ETH community, it has yet to be reflected in the price of Ethereum, which is trading below the $3,500 mark at press time.
Demand for Ethereum Skyrockets
Julio Moreno, head of research at CryptoQuant, said that there is currently a significant increase in demand for Ethereum in the market. According to Moreno, permanent ETH holders purchased a staggering 298,000 ETH yesterday, making it the second highest daily purchase on record.
The record for highest daily purchases now remains September 11, 2023, when ETH holders scooped up 317,000 ETFs. However, even the current rise in demand for Ethereum highlights long-term investors’ growing interest and confidence in the crypto market.
Courtesy: CryptoQuant
The massive increase in demand for Ethereum occurred as ETH Price
has corrected more than 9% in the last seven days. However, as we have seen, on-chain metrics continue to show strength for the world’s second-largest cryptocurrency.
As CoinGape reports, The withdrawal of Ethereum of the Coinbase exchange soared to 300,000, making it one of the largest exits in 2024. With this, the total Ethereum withdrawal value exceeded $1 billion.
ETH Price Action Coming?
Despite the positive on-chain indicators, the ETH bulls have not gained enough control to trigger a rally beyond $4,000. Currently, Ethereum is trading just below its crucial $3,500 support zone.
The ETH price last fell below $3,500 in April, leading to a 25% decline to hit the low of $2,814 on May 2. All eyes will be on how quickly the SEC Chairman gives the green light for the Ethereum ETF to go live for trading. This is likely to lead to large capital inflows, as we saw after the approval of the Bitcoin spot ETF.