Ethereum HODLers Scoop 298,000 ETH In 24 Hours, Despite Market Weakness

Taking to Twitter, one analyst notes a spike in ETH demand, especially from permanent holders. Most likely, these permanent holders are institutions with deeper pockets and are willing to hang on.

As the dust settles on a tumultuous week in the cryptocurrency markets, on-chain data reveals a surprising trend that may bolster the bulls. Despite the sharp sell-off, with Ethereum prices tumbling roughly 15% from March 2024, indicating a bearish market, a closer examination suggests otherwise.

According to an analyst on X, there has been a spike in ETH demand, particularly from permanent holders. These are typically institutions with deeper pockets and a longer-term outlook.

Unlike retail traders who may be more prone to market volatility, these institutions can opt to hold for extended periods.

As per records, these permanent holders are credited with the second-highest daily purchase. During a brief price uptick on June 12, they bought a substantial 298,000 ETH. Notably, this figure falls just short of the all-time high of 317,000 ETH purchased on September 11, 2023.

This surge in demand, amidst a wave of lower lows on the daily chart, suggests strong bullish sentiment.

Considering the vast quantity of ETH scooped from the markets, it could also indicate that institutions, such as hedge funds or billionaires, are entering the scene. They appear to be capitalizing on the lower prices.

At press time, Ethereum prices show weakness on the daily chart. Despite the bounce on June 12, the bulls failed to fully reverse the losses of June 11. With the dip on June 13, the sellers are back in the picture, and prices could be eyeing the prominent June 11 bear candle.

Judging by the candlestick arrangement on the daily, $3,700 is emerging as a resistance level. Following the breakout on June 7, ETH has been free-falling to spot rates, actively filling the May 20 gap.

If the dump continues, it is likely that ETH, despite the optimism, will once again re-test $3,300.

Whether prices will recover from current levels or slip towards $3,300 remains to be seen. However, the broader market sentiment is upbeat, with promising news emerging from the regulatory front.

During a senate hearing, Gary Gensler, the chair of the United States Securities and Exchange Commission (SEC), hinted at the potential approval of spot exchange-traded funds (ETFs) for Bitcoin and Ethereum.

Gensler mentioned that the SEC is working on approving several applications, including those for spot ETFs, in the upcoming months. Specifically, he highlighted that spot ETFs for Ethereum, whose 194-b forms were approved in May, may begin trading at a tentative time in the summer. Notably, BlackRock has already resubmitted its S-1 filing for a spot ETF and is awaiting approval.

If the product is approved in the next few weeks, it will be a major liquidity boost for ETH. Like spot Bitcoin ETFs, institutions will be able to channel billions into ETH, allowing their clients to gain exposure.

News source：https://www.kdj.com/cryptocurrencies-news/articles/ethereum-hodlers-scoop-eth-hours-market-weakness.html

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