- The demand for Ethereum ($ETH), the second-largest cryptocurrency by market cap, has recently soared to near-record levels.
- On a single day, long-term holders amassed 298,000 ETH valued at approximately $1.04 billion.
- Julio Moreno from CryptoQuant pointed out that this remarkable accumulation came close to an all-time high set last September when 317,000 ETH were bought.
Ethereum’s rising demand and significant purchases by permanent holders signal a potential bullish trend in the market.
Ethereum Surges Amid SEC Approval Hints
Ethereum’s price momentum picked up pace in the wake of optimistic comments from Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC). Addressing a Senate subcommittee, Gensler suggested that final approvals for spot Ethereum exchange-traded funds (ETFs) could be granted before the end of summer. This news invigorated the market, causing Ethereum’s price to jump by nearly 20% within a day, contributing to a $200 billion increase in the total cryptocurrency market capitalization.
Whale Activity Sparks Interest
According to analytics firm SpotOnChain, a notable “whale” has been rigorously accumulating Ethereum. This entity recently acquired 7,000 ETH worth over $26 million from Binance at around $3,800 per coin. It’s worth noting that the same whale had liquidated most of their holdings during the bear market. Such significant buying actions from large players typically signal strong confidence in future price appreciation, and this whale’s activities have certainly contributed to the current positive sentiment.
Ethereum Price Analysis: Current Trends
As of now, Ethereum is trading above the $3,500 mark, close to its 50-day moving average and beneath its 200-day moving average, which stands at around $3,600 on the monthly chart. This configuration suggests a bearish trend, highlighted by the formation of the “death cross,” where the 50-SMA crosses below the 200-SMA. Although the relative strength index (RSI) is currently neutral, it shows signs of upward movement, hinting at potential short-term bullish behavior. Meanwhile, the MACD indicator presents a possible bullish signal despite showing weak momentum in its histogram.
Conclusion
In summary, Ethereum’s recent buying rampage by long-term holders, paired with positive regulatory signals from the SEC, has injected a fresh wave of optimism in the market. While technical indicators display mixed signals, the overall sentiment points towards a cautiously bullish outlook. Investors may look at the critical support and resistance levels at $3,200 and $3,600, respectively, to gauge future price movements. As the market continues to evolve, staying informed with the latest developments will be crucial for making strategic investment decisions.
