Ethereum has been facing challenges in maintaining its position above the $4,000 mark, reflecting a lack of momentum in the broader cryptocurrency market.
Despite this, data indicates a rising demand for the cryptocurrency. Julio Moreno, head of research at CryptoQuant, reported a significant buying spree by “permanent holders” of Ethereum. On June 13th, these holders bought 298,000 ETH, worth over $1 billion at current prices. This is the second-highest daily purchase volume ever recorded, just behind the 317,000 ETH bought on September 11, 2023.
Price Decline Amid Corrections
Over the past week, ETH’s price has fallen by almost 8%, currently trading just above $3,500. Despite this, the increase in demand highlights growing interest and confidence in the cryptocurrency among long-term investors, especially with the anticipation of spot Ethereum ETF trading.
Wealthy investors have been accumulating more ETH. The number of addresses holding 10,000 or more ETH has risen over the past three weeks. Investment products based on the cryptocurrency have also seen significant inflows since the US Securities and Exchange Commission (SEC) approved the initial round of applications in May.
Major Ethereum Outflow from Coinbase
On June 12th, Coinbase experienced its largest Ethereum outflow of the year, with over 336,000 ETH, worth $1.17 billion, being withdrawn. These transactions, ranging from $400 million to $1.1 billion, suggest movements by whales or unidentified institutions anticipating a price rise.
SEC Chair Gary Gensler informed senators during a budget hearing that the final approval of spot Ethereum ETFs is expected by the end of this summer. The approval process is progressing smoothly after the initial approval of a batch of such products. The SEC had previously greenlighted the first round of applications last month, and the final registration requirements, known as S-1 filings, are now being processed at the staff level. Once these filings are approved, the new spot Ethereum ETFs can be listed.
