Published on juni 17, 2024, 3:26 pm
Image source: Fox News
```json [ "TLDR: Despite Bitcoin's recent dip, Ethereum remains strong around $3,500 with increased trading volume and support. Ether supply on exchanges hits a 5-year low as withdrawals rise, signaling long-term holding. Large holders accumulate ETH, while leveraged bets increase, boosting market sentiment. Optimism surrounds potential launch of spot Ether ETFs in July, driving anticipation for price surge." ] ```
Despite Bitcoin’s recent sell-off to $65,000, Ethereum (ETH) is displaying resilience as bulls are reinforcing their position around the $3,500 mark. The digital asset recently faced a 15% decline from $4,000 to a low of $3,363 on June 16 and has since remained down by 4% over the past week.
Ether’s current price is holding steady at around $3,518, approximately 14% lower than its all-time high of $4,091 achieved on March 12. Despite the downward trend in price, Ether has experienced a notable uptick in trading volume with a substantial 43% increase to $14 billion, indicating heightened selling activity.
However, amidst this seemingly bearish scenario, ETH has found support at the critical $3,500 level. Various technical indicators and onchain data suggest a potential upward trajectory for Ethereum moving forward.
One positive sign for Ether’s future performance is the dwindling supply on exchanges. Recent data from CryptoQuant reveals that the amount of Ethereum held on centralized exchange platforms has plummeted to a five-year low of 16.7 million ETH following a significant 9.3% decrease over the last three months.
Notably, there has been a surge in withdrawals from trading platforms between May and June as investors possibly shift their tokens to self-custody wallets—a move typically associated with holding assets for long-term gains rather than immediate selling pressure.
Furthermore, large holders have been accumulating ETH over recent weeks according to market intelligence firm Santiment. The rise in wallets holding between 10,000 and 100,000 ETH since late May suggests that major players in the crypto space are positioning themselves for potential future profits.
Additionally, an increase in demand for leveraged positions has resulted in a rise in ETH futures open interest from $15.06 billion to approximately $16.15 billion recently. This surge indicates growing interest in leveraged bets on Ethereum’s price movements.
From both an onchain and derivatives perspective, market sentiment remains optimistic surrounding Ethereum amid expectations of the launch of spot Ether ETFs in the near future. Past rallies related to favorable regulatory developments such as SEC’s approval of spot Ether ETF applications have driven significant price surges for ETH.
As traders closely monitor developments regarding spot Ether ETFs potentially hitting markets by early July – analysts pointing towards July 2 as a probable date – there is anticipation for further price appreciation leading up to and following their debut.
It is essential to note that this article serves informational purposes only and does not offer investment advice or recommendations. Investors are advised to conduct thorough research before engaging in any financial decisions within the cryptocurrency space amid its inherent risks and volatility.
Original article posted by Fox News
