Ethereum Permanent Holders Collected 298 Thousand ETH in One Day, Will ETH Price Rise Soon?
All eyes are currently on Ethereum, with US Securities and Exchange Chairman Gary Gensler stating that approval of the spot Ethereum ETF will occur by the end of this summer. Although this news brought some optimism to the ETH community, it has not yet been reflected in the Ethereum price, which was trading below $3,500 as of the time the news was published.
Ethereum Demand Suddenly Rises
Julio Moreno, head of research at CryptoQuant, stated that there is a significant increase in demand for Ethereum currently in the market. Permanent ETH holders purchased a staggering 298,000 ETH yesterday, according to Moreno, making it the second-highest daily purchase in history.
The record for highest daily purchases remains on September 11, 2023, when ETH holders collected 317,000 ETFs as of now. But even the current surge in Ethereum demand underscores the growing interest and confidence in the crypto market among long-term investors.
Courtesy: CryptoQuant
The massive increase in demand for Ethereum came as the ETH price corrected more than 9% in the last seven days. But as we see, on-chain metrics continue to show strength for the world’s second-largest cryptocurrency.
As reported by parofix, Ethereum’s withdrawal from the Coinbase exchange has increased to a whopping 300,000, thus making it one of the largest exits in 2024. Thus, the total value of Ethereum withdrawal exceeded $1 billion.
Is ETH Price Action Ahead?
Despite positive on-chain indicators, ETH bulls failed to gain enough control to trigger a rally above $4,000. Currently, Ethereum is trading just below the critical $3,500 support zone.
Most recently, the ETH price fell below $3,500 in April, which dropped to $2,814 on May 2, a 25% decline. All eyes will be on how quickly the SEC chairman gives approval to upgrade the Ethereum ETF. Go live to trade. This is likely to lead to large capital inflows, as we saw after the approval of the spot Bitcoin ETF.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
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